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HD Supply Downgraded to Strong Sell: Should You Dump?
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On Jun 10, Zacks Investment Research downgraded HD Supply Holdings, Inc. to a Zacks Rank #5 (Strong Sell). Going by the Zacks model, companies holding a Zacks Rank #5 have strong chances of underperforming the broader market.
In the last three months, the company’s shares have lost nearly 23.43%, wider than 20.39% decline of the Zacks categorized Industrial Services industry.
Why the Downgrade?
Market sentiments have been weak for HD Supply Holdings for quite some time, especially after the company reported lower-than-expected results for first-quarter fiscal 2017 (ended Apr 2017) on Jun 6. Earnings of 63 cents per share lagged the Zacks Consensus Estimate of 65 cents by 3.08%.
For second-quarter fiscal 2017, HD Supply Holdings expects revenues to be within $1,325−$1,365 million. At midpoint, this forecast represents 28.2% decrease from $1,873 million generated in the fiscal first quarter. Adjusted net earnings are predicted to be 60−65 cents per share, below 63 cents in the previous quarter.
Over the last 60 days, the Zacks Consensus Estimate for the stock decreased 32.8% to $2.23 for fiscal 2017 and 25% to $2.85 for fiscal 2018. Also, the company has an Earnings ESP of -6.73% for fiscal 2017 and -11.23% for fiscal 2018. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
HD Supply Holdings has a market capitalization of $6.34 billion. Some better-ranked stocks in the industrial services industry include Horiba Ltd. (HRIBF - Free Report) , Ashtead Group PLC (ASHTY - Free Report) and Harsco Corporation . While Horiba sports a Zacks Rank #1 (Strong Buy), both Ashtead Group and Harsco Corporation carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Horiba’s earnings estimates for 2017 and 2018 were revised upward in the last 60 days.
Ashtead Group pulled off a positive earnings surprise of 0.88% in third-quarter fiscal 2017. Also, its earnings expectations for fiscal 2018 improved over the past 60 days.
Harsco Corporation’s earnings estimates for 2017 and 2018 were revised upward in the last 60 days. Also, the company’s average earnings surprise for the last four quarters was a positive 137.71%.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
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HD Supply Downgraded to Strong Sell: Should You Dump?
On Jun 10, Zacks Investment Research downgraded HD Supply Holdings, Inc. to a Zacks Rank #5 (Strong Sell). Going by the Zacks model, companies holding a Zacks Rank #5 have strong chances of underperforming the broader market.
In the last three months, the company’s shares have lost nearly 23.43%, wider than 20.39% decline of the Zacks categorized Industrial Services industry.
Why the Downgrade?
Market sentiments have been weak for HD Supply Holdings for quite some time, especially after the company reported lower-than-expected results for first-quarter fiscal 2017 (ended Apr 2017) on Jun 6. Earnings of 63 cents per share lagged the Zacks Consensus Estimate of 65 cents by 3.08%.
For second-quarter fiscal 2017, HD Supply Holdings expects revenues to be within $1,325−$1,365 million. At midpoint, this forecast represents 28.2% decrease from $1,873 million generated in the fiscal first quarter. Adjusted net earnings are predicted to be 60−65 cents per share, below 63 cents in the previous quarter.
Over the last 60 days, the Zacks Consensus Estimate for the stock decreased 32.8% to $2.23 for fiscal 2017 and 25% to $2.85 for fiscal 2018. Also, the company has an Earnings ESP of -6.73% for fiscal 2017 and -11.23% for fiscal 2018. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
HD Supply Holdings, Inc. Price and Consensus
HD Supply Holdings, Inc. Price and Consensus | HD Supply Holdings, Inc. Quote
Stocks to Consider
HD Supply Holdings has a market capitalization of $6.34 billion. Some better-ranked stocks in the industrial services industry include Horiba Ltd. (HRIBF - Free Report) , Ashtead Group PLC (ASHTY - Free Report) and Harsco Corporation . While Horiba sports a Zacks Rank #1 (Strong Buy), both Ashtead Group and Harsco Corporation carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Horiba’s earnings estimates for 2017 and 2018 were revised upward in the last 60 days.
Ashtead Group pulled off a positive earnings surprise of 0.88% in third-quarter fiscal 2017. Also, its earnings expectations for fiscal 2018 improved over the past 60 days.
Harsco Corporation’s earnings estimates for 2017 and 2018 were revised upward in the last 60 days. Also, the company’s average earnings surprise for the last four quarters was a positive 137.71%.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>