Home Depot
Home Depot Inc. (NYSE: HD) has added about 4.3% to its share price over the past 12 months, including a boost of 14% in the past three months. Following negative sales growth in the company’s fiscal fourth quarter that ended in January, sales picked up in the first quarter of fiscal 2024 but missed the consensus estimate by 2.7%.
A weak housing market is weighing on Home Depot’s stock, as it is on rival Lowe’s shares. When Home Depot reported first-quarter earnings in May, it guided EPS and revenue sharply lower. Anything less than a solid beat will be bad news for shareholders. Home Depot reports results early Tuesday.
Of 36 analysts covering the stock, 20 have a Buy or Strong Buy rating, and 15 have rated it at Hold. At a share price of around $330.00, the stock trades above its median price target of $328.50. At the high price target of $380.00, the upside potential is 15.1%.
Analysts expect Home Depot to report fiscal second-quarter revenue of $42.21 billion, up 13.3% sequentially but 3.6% lower year over year. Adjusted EPS are forecast at $4.44, up 16.3% sequentially and down 12.1% year over year. For the full 2024 fiscal year ending in January, EPS are forecast at $14.96, down 10.4%, on sales of $152.28 billion, down 3.3% year over year.
Home Depot stock trades at 22.0 times expected 2024 EPS, 20.7 times estimated 2025 earnings of $15.88 and 19.4 times estimated 2026 earnings of $16.69 per share. Its 52-week range is $265.61 to $347.25. The Dow Jones industrial average component pays an annual dividend of $8.36 (yield of 2.55%). Total shareholder return for the past year was 8.6%.
Sea Limited
Singapore-based Sea Ltd. (NYSE: SE) operates Asia’s leading online gaming and entertainment platform. Over the past 12 months, the stock has fallen by 34.4%, including a gain of about 10.5% so far in 2023. Since posting a 52-week high exactly one year ago, shares are down nearly 39%.
The company’s e-commerce business has been growing rapidly while its gaming business has been shrinking. Sea Limited has been doing a better job of controlling costs, but investors are going to be looking for solid evidence that the company has turned around. The company reports quarterly results Tuesday morning.
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