Home Depot earnings ahead [Video]

Giles Coghlan LLB, Lth, MA Financial Source

Home Depot is a multinational corporation specialising in home improvement retail. It offers a wide range of products and services including tools, construction materials, appliances, fuel, and transportation rentals. As the largest home improvement retailer in the United States, Home Depot has over 490K employees.

Home Depot has warned already of a fiscal year profit decline and earnings will provide information on how resilient the US consumer is. Investors will be closely looking at any of Home Depot’s future revisions for growth. How does Home Depot forecast its ability to find its way through potential falling US consumer confidence? The drop in US Michigan Consumer confidence last Friday is a hint that US consumer confidence may be starting to wane.

Seasonally, Home Depot tends to see a weaker summer period. However, will any summer dips provide decent entry points for a typically strong year-end?

Major Trade Risks: The major trade risk here is if the US enters into a hard recession and the demand for US home improvements rapidly falls away.

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Author

Giles Coghlan LLB, Lth, MA

Financial Source

Giles is the chief market analyst for Financial Source. His goal is to help you find simple, high-conviction fundamental trade opportunities. He has regular media presentations being featured in National and International Press.

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