Home Depot Inc. Earnings: 3 Things to Watch
Home Depot (NYSE:HD) investors have pushed the stock to near record highs heading into the retailer’s second-quarter earnings report. Here’s what investors will be watching for when the home-improvement giant posts its results on Tuesday, Aug. 15.
Customer traffic… It’s a safe bet that the company will announce solid sales growth this week. After all, a rising housing market has powered 5% or better comparable-store sales in each of the last three years. Comps for its fiscal first quarter kept that impressive trend alive and implied continued market share gains. At 5.5%, its growth pace nearly triple rival Lowe’s (NYSE:LOW) result.
Here’s everything you need to know about Home Depot’s earnings
Home Depot is set to report second-quarter earnings before the bell on Tuesday. Here’s what Wall Street is expecting: Earnings per share: $2.22, according to a survey of analysts by Thomson Reuters. Revenue: $27.84 billion, Thomson Reuters said.Same-store sales: up 4.9 percent, according to Thomson Reuters.In the fiscal first quarter, Home Depot’s earnings and sales topped Street estimates as more shoppers flocked to its stores.
The home improvement retailer also raised its profit outlook for 2017, showing no sign of slowing down anytime soon. Home Depot has been benefiting both from growth in sales of big-ticket items, which are priced above $900, and from an increase in the average shopper’s ticket. While the apparel sector within retail is struggling to win shoppers’ dollars, home improvement companies Home Depot and Lowe’s tell a better story.
So long as consumers are buying homes, and confidence remains high, their sector within retail continues to outperform the rest; Home Depot and Lowe’s are reporting same-store sales growth that specialty retailers and department stores dream of.
Home Depot Inc: Earnings Will Make HD Stock a Market-Beater
Expect strong results that push HD stock to record levels and beyond. Shares in Home Depot Inc (NYSE:HD) are not far removed from a recent all-time high and Tuesday’s earnings report will probably put HD stock over the top once again. After all, earnings beats are just what Home Depot does.
Profit has eclipsed Wall Street estimates for six consecutive quarters, while the top line surprised to the upside in seven of the last eight quarters. In a rational world, better-than-expected earnings shouldn’t move the share price. They’re backward looking. But they usually do. And as long as the outlook plays along, HD stock has a chance of closing the performance gap vs. the S&P 500 Index before year-end. Shares in Home Depot are up 4% for the year-to-date vs. a gain of more than 7% for the broader market.
Trading to Be Right Can be Hazardous to Your Wealth
Some traders prefer being right to being profitable…
Losing trades drive them insane. A constant barrage of negative self-talk spirals out of control with: “What did I miss? What did I do wrong? Why did I lose money??”
If this sounds familiar, you need to stop. You need to start focusing on probabilities, not results. I know that sounds dumb, we trade to make money. Yes I know, but you are killing your chances by thinking every trade should be profitable.
Great traders focus on results over time. Break-even traders focus on the results of each trade.
We trade because we have an edge. An edge means over a large sample of perfect trades, our strategy should make money.
To become great, to become consistent, to get paid, month, after month–focus on the process of trading well. The money will follow.
Stop trading to be right. Stop trading to boost your ego.
Starting today view each trade as one of many. One of a group of perfect trades. If we make ten trades, we have no idea which of those ten will be the winners or the losers.
Stop hesitating, stop second guessing and stop trying to be perfect. Write a trading journal, pay attention, and adapt to results.
Just trade, and let your edge make you money.
On the Tape Today | 8-15-17
FSLR-First Solar Inc order flow remains solid and the stock price has room to go. Game planning a new swing trade long with a profit target coming in @ $55. Entry trigger is $49.25 with minor resistance at $50. Stop loss planned for a close below $48.
Stock Market Sector Performance
Stocks to Trade | 8-15-17 Tuesday Edition
Bullish Momentum: HTZ, VFC, FSLR
Bearish Momentum: myl, ctrp, mnk, tjx, dvn, teva
Bullish Order Flow: SNI, TTWO, GRUB, WB, BA, CAR, EA, AAPL, FB, CC, UNH, MA, PNC, DE, HON, MCD, HD (earnings), AET
Bearish Order Flow: myl, mnk, apa, hes, dvn, slca, trgp, apa, cah, hal, hp, slb, ibm, hog, stx, mo, dhr, ual, dks
Double Normal Volume: JD, MYL, CTRP
Inside Days: m, x, wmt, kr, mo, mos, gps, stx, pm, cl, jnj, fl, utx
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