Author: Gary Ashton
Estimated read time: 3 minutes
Publication date: 18th Nov 2019 15:38 GMT+1
Third-quarter earnings season rolls on this week with some heavy hitters in the US retail sector. Specific names lined up to report on November 19th are Home Depot Inc. (NYSE: HD) and TJX Companies Inc. (NYSE: TJX) followed by Lowe’s Companies Inc. (NYSE: LOW) and Target Corporation (NYSE: TGT) the next day.
Home Depot is the largest of these names with over a $200 billion market capitalization, so investors will be keenly watching its 3Q results to get a sense of the health of the US consumer. Stock performance this year has been impressive, up 37.63% compared to the wider S&P 500 index, which is up 24.32% in the same period.
Analysts estimate Home Depot’s 3Q earnings will come in at $2.52 per share, which have been revised down by 0.8% in the last 90 days but is still a penny higher than reported 3Q earnings last year.
A close rival to Home Depot is Lowe’s Companies, who also report 3Q earnings this week. Lowe’s stock performance has trailed Home Depot this year, up 25.20%, which is more in line with the broader market. Analysts have also revised down Lowe’s 3Q earnings by nearly 3% in the last 90 days to $1.34 per share, which is still an improvement on the same quarter the previous year with earnings per share of $1.04.
Analysts are more optimistic about Target Corporation and have not revised down their $1.17 3Q earnings per share estimate. Target reported earnings of $1.09 in 3Q last year, so analysts anticipate more than a 7% increase this year. The stock price is up more than 40% over the previous 12 months and still appears to have some value with a PE ratio of 17.4x compared to an average PE ratio of the S&P 500 of 29.3x, making Target a better value stock than 64.3% of the companies in the index.
You can follow all the results using our Earnings Calendar. To see the same nine stocks mentioned in this blog, choose “S&P 500” from the market down in the upper left of the page. If not already selected, choose “This Week” in the middle of the page on the left. Finally, to filter down our names, select “Market Cap (mil)” from the filter at the top right and then change the symbol to “>” which means greater-than and type in 50,000, which is $50 billion. You should be able to see the same nine names mentioned here when finished.
Disclaimer: The writer is an experienced financial consultant who writes for Finscreener.org. The observations he makes are his own and are not intended as investment or trading advice.
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