Home Depot stock fell after the retailer reported third-quarter earnings. Shares of construction goods giant Home Depot are dropping in premarket trading after the company cut full-year sales growth guidance. But its lowered forecast isn’t a problem for the overall market, according to Wall Street.
Why is home depot stock falling today?
Home Depot said stores would remain open as it’s an essential retailer, but they would close at 6 p. m.
Home Depot Inc. shares fell the most in almost two years Tuesday after fourth-quarter profitability missed Wall Street’s expectations amid supply-chain investments and higher costs.
Why are Home Depot and Lowe’s trading lower today?
© Provided by Benzinga The Home Depot Inc (NYSE: HD) and Lowe’s Companies Inc (NYSE: LOW) are trading lower amid overall market weakness. Retail sales as well as weaker-than-expected bank earnings. Fed tapering concerns have also impacted housing-related stocks.
Why did Home Depot’s sales decline during the quarter?
Fewer people shopped at Home Depot’s stores during the quarter than they did a year ago. And while higher average sales per transaction more than offset this decline in traffic, much of Home Depot’s gains in average ticket were due to higher commodity prices . The slowdown in consumer spending is an industrywide trend.
Why is Home Depot’s Sales slow?
And while higher average sales per transaction more than offset this decline in traffic, much of Home Depot’s gains in average ticket were due to higher commodity prices . The slowdown in consumer spending is an industrywide trend.
Why is home depot so successful?
Its fundamental story of offering a “huge variety of merchandise at great prices with highly-trained staff” sparked a tremendous stock move in the 1980s and into the early 1990s. Meanwhile, Home Depot’s fundamental track record is exemplary .
Could Home Depot shares turn back up in short order?
And if that turns out to be the case, Home Depot shares could be turning back up in short order. This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service.
Long story short, the $12.53 per share in profits according to generally accepted accounting principles ( GAAP) that analysts expect Home Depot to earn this year could be the least this company earns. And if that turns out to be the case, Home Depot shares could be turning back up in short order .
The home-improvement chain was a big winner during the pandemic, and it’s now facing tough comparisons to a year ago when consumers, flush with stimulus cash, spent on renovation projects instead of travel, entertainment, or other leisure activities. But long-term investors shouldn’t be worried . There is still a lot to like about Home Depot.
The Motley Fool owns shares of and recommends Home Depot. The Motley Fool has a disclosure policy .