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Home Improvement Stock Earnings Preview: HD vs. LOW

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It has been a rocky few years for the broader retail industry, but not so in the home improvement market. This corner of the consumer discretionary sector has been buoyed by rising home prices, while it remains relatively well-insulated from online competition, allowing the sector to outperform.

The two giants of the space are offering up their quarterly results this week, and the pressure will be on when these companies deliver their results. Can they keep up this trend or is their dream run over? Let’s take a quick look at their fundamentals heading into the report for some clues.

Home Depot (HD - Free Report)

Home Depot shares have been shaky since their last earnings report, but they have finally rebounded and are at fresh highs. However, earnings estimates remain on an uncertain trajectory even with a positive Earnings ESP. It is worth noting that despite a great history in earnings season, the stock has just a Zacks Rank #3 (hold) and it just moved out of ‘sell’ territory within the past week, not a good sign heading into the release.

HOME DEPOT Price, Consensus and EPS Surprise

HOME DEPOT Price, Consensus and EPS Surprise | HOME DEPOT Quote

Home Depot reports before the bell on 8/16.

 

Lowe’s (LOW - Free Report)

Lowe’s also has a nice history in earnings season, though the stock doesn’t have quite as good of a track record as HD. Still, it is seeing rising earnings estimates heading into the report, including a Zacks Rank #2 (Buy) and a positive earnings ESP. With these metrics, there is definitely some promise for LOW this earnings season, and potentially more so than HD if we focus on the rank and estimates.

LOWES COS Price, Consensus and EPS Surprise

LOWES COS Price, Consensus and EPS Surprise | LOWES COS Quote

Lowe’s reports before the bell on 8/17.

 

For more in-depth analysis of these companies, make sure to watch our short video on the topic. And for additional insights on trading earnings reports, check out our podcast below:


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Lowe's Companies, Inc. (LOW) - free report >>

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