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Earnings AlertBoth $HD and $LOW reported Q2 earnings this week, both having HUGE BLOWOUT quarters
Let's see how the two stacked up against one another this quarter and see which is the better buy
EARNINGS THREAD
Company: The Home Depot, Inc. Lowe's Companies
Symbol: $HD $LOW
Stock Price: $282.86 $158.28
Market Cap: $306.5B $119.2B
Symbol: $HD $LOW
Stock Price: $282.86 $158.28
Market Cap: $306.5B $119.2B
Let's see how the Quarter stacked up for both
$HD Revenues $38.1B
$LOW Revenues $27.3B
Comparable Sales (Stores open at least 12mo)
$HD 23.4%
$LOW 34.2%
US Comp Sales
$HD 25.0%
$LOW 35.1%
Operating Income
$HD $6.1B +24% YOY
$LOW $4.0B +66% YOY
$HD Revenues $38.1B
$LOW Revenues $27.3B
Comparable Sales (Stores open at least 12mo)
$HD 23.4%
$LOW 34.2%
US Comp Sales
$HD 25.0%
$LOW 35.1%
Operating Income
$HD $6.1B +24% YOY
$LOW $4.0B +66% YOY
Gross Margin %
$HD 34% +20bps
$LOW 34.1% +197bps
Oper Margin %
$HD 15.9% FLAT
$LOW 14.5% +315bps
Net Earnings
$HD $4.3B +24.5% YOY
$LOW $2.8B +68.7% YOY
EPS
$HD $4.02 +27% YOY
$LOW $3.75 +74% YOY
$HD 34% +20bps
$LOW 34.1% +197bps
Oper Margin %
$HD 15.9% FLAT
$LOW 14.5% +315bps
Net Earnings
$HD $4.3B +24.5% YOY
$LOW $2.8B +68.7% YOY
EPS
$HD $4.02 +27% YOY
$LOW $3.75 +74% YOY
# of Transactions
$HD 511.5 +12.3%
$LOW +22.6%
Avg Ticket
$HD $74.12 +10.1%
$LOW +11.6%
Sales per sq ft
$HD $629.38 +23.5%
$HD 511.5 +12.3%
$LOW +22.6%
Avg Ticket
$HD $74.12 +10.1%
$LOW +11.6%
Sales per sq ft
$HD $629.38 +23.5%
Both companies had AMAZING quarters due to the fact so many consumers have been stuck at home due to the pandemic, which has created more time and needs for home improvement projects
I know at my home we have done a few projects and made multiple trips to $HD
I know at my home we have done a few projects and made multiple trips to $HD
This should continue into Q3 as both CEOs mentioned sales in August have continued to be strong, but not sure how long comps of this magnitude will remain
What I was more focused on with $LOW was the efficiency improvements which has been an area of focus for CEO Marvin Ellison
$HD is already the gold standard for efficiency and though I like $HD better from a company perspective, I believe $LOW has more room for improvements
$HD is already the gold standard for efficiency and though I like $HD better from a company perspective, I believe $LOW has more room for improvements
Let's look at both from a valuation perspective, starting with $HD
P/E 25.91x
5yr Avg P/E 22.4x
Fwd P/E 25.0x
Div Yield 2.12%
5yr Avg Div Yield 2.08%
P/S 2.6x
5yr Avg P/S 2.0x
P/E 25.91x
5yr Avg P/E 22.4x
Fwd P/E 25.0x
Div Yield 2.12%
5yr Avg Div Yield 2.08%
P/S 2.6x
5yr Avg P/S 2.0x
Next, let's look at $LOW valuation
P/E 20.1x
5yr Avg P/E 21.2x
Fwd P/E 21.2x
Div Yield 1.39%
5yr Avg Div Yield 1.71%
P/S 1.5x
5yr Avg P/S 1.1x
P/E 20.1x
5yr Avg P/E 21.2x
Fwd P/E 21.2x
Div Yield 1.39%
5yr Avg Div Yield 1.71%
P/S 1.5x
5yr Avg P/S 1.1x
Both are trading well above their recent history, but that seems reasonable given the year they have had so far from a results perspective
Looking at the charts, both stocks are at or above an RSI of 70 and trading at an all time high so it is tough for me to initiate here
Looking at the charts, both stocks are at or above an RSI of 70 and trading at an all time high so it is tough for me to initiate here
