Home Depot Q3 Earnings: Can Improving Financials Beat Interest Rates, Inflation Concerns?
Portfolio Pulse from Surbhi Jain
Home Depot Inc (HD) is set to report Q3 earnings on Nov. 14, with analysts expecting $3.58 EPS and $35.66 billion in revenue. The company has beaten EPS estimates for the past 12 quarters. Analysts are cautious due to higher interest rates, inflation, and a shift in consumer spending. Stifel analyst expects a 3% decline in FY23 comparable sales for Home Depot. The consensus price target is $319.23, with an average Buy rating. Stifel has a Hold rating with a target price of $306. HD stock traded at $288.54 and is down 8.5% YTD. Other retailers like Lowe's (LOW), Target (TGT), Walmart (WMT), and Macy's (M) are also reporting earnings this week.
November 13, 2023 | 5:58 pm
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NEUTRAL IMPACT
Home Depot is anticipated to report strong Q3 earnings, but faces macroeconomic headwinds such as higher interest rates and inflation. Analysts have a cautious outlook with a consensus price target of $319.23 and a recent Hold rating from Stifel.
While Home Depot has a strong history of beating EPS estimates, the current economic environment poses risks that may temper investor enthusiasm. The cautious view from analysts, including a Hold rating and lowered price target from Stifel, suggests a neutral short-term impact on the stock.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Lowe's Companies Inc, along with other leading retailers, is set to report earnings this week, which may be influenced by Home Depot's performance and the overall retail sector sentiment.
Lowe's performance is often compared to Home Depot's, and while not the focus of this article, its stock may experience indirect effects based on Home Depot's earnings and the broader market response.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 60
NEUTRAL IMPACT
Macy's Inc is among the retailers reporting earnings this week, and its stock could be affected by the outcomes of Home Depot's earnings and the overall health of the retail sector.
Macy's stock may see indirect effects from Home Depot's earnings report, as it is part of the broader retail earnings wave, though the direct impact may be muted due to different consumer bases.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Target Corp is part of the group of retailers reporting earnings this week, which could be impacted by the market's reaction to Home Depot's earnings and overall consumer confidence.
Target's stock may be influenced by the retail sector's performance, including Home Depot's earnings, although the direct impact may be limited as the companies cater to different segments of the retail market.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Walmart Inc's upcoming earnings could see an impact from Home Depot's report, as investor sentiment in the retail sector adjusts to the latest financial data and economic indicators.
Walmart's stock may react to shifts in investor sentiment following Home Depot's earnings, given its position in the retail sector, though the direct correlation may be moderate due to differing market focuses.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50