Home Depot shares could move today
US home improvement retailer Home Depot kick-starts US retailers' earnings this week. IGTV’s Jeremy Naylor explains the market expects a tough start to the year.
High inflation has forced consumers to restrict spending and favour essentials such as food and energy. As a result, more homeowners have chosen to delay renovation projects.
Earlier this year Home Depot warned it expected earnings to fall by a mid-digit percentage this year, and sales to be broadly flat.
(Video Transcript)
Home Depot earnings
In the US, Home Depot will kick off the US retailing earnings this week. The market expects a tough start to the year for home improvement companies. High inflation has forced consumers to restrict spending and favour essentials such as food and energy. As a result, more homeowners have chosen to delay renovation projects.
You may remember earlier on this year, Home Depot warned it expected earnings to fall by a mid-digit percentage this year and sales to be broadly flat.
Well, let's take a look at what's expected. The stock is an all-session stock, which I'll show you in just a minute. For the first three months of the year, analysts expecting earnings to fall around about 7% to $3.87 per share. Revenues expected to come in at $38.6 billion, be compared with $38.9 billion in the same quarter this time last year.
Share price chart
As I said, it's an all-session stock, which means it gets underway at 9:00 this morning, UK time. And this stock reports two and a half hours, 3 hours later on than that. We're expecting the stock to open at $288.77.
And if you are long on this, going into the numbers, your stock is underneath this line of support we've drawn on here, which is the low point we saw back on the 28th of March this year. So your stop at just under the $280 level. 288. 77 is where we are going into the session today.
If you want to go short on this, your stock goes up here over the 200-day moving average at around about the $302 level. So that's one of the stocks to watch at the start of today's trade in the US.
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