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September 11, 2017



For today's bulletin, we take a look at two of our home improvement retailers in the wake of Hurricanes Irma and Harvey. We also provide a link to download FREE STOCK REPORTS on Lowe's $LOW and Home Depot $HD.

VALUATION: Overvalued stocks now make up 49.72% of our stocks assigned a valuation and 18.12% of those equities are calculated to be overvalued by 20% or more. Ten sectors are calculated to be overvalued.

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--Stay Safe

Home Improvement Centers Scramble To Help Hurricane Victims

Home Depot (HD) is the one of world's largest home improvement retailer. The company offers a level of service unprecedented among warehouse-style retailers. Home Depot stores cater to do-it-yourselfers, as well as home improvement, construction and building maintenance professionals. The Home Depot currently operates in the USA, Canada, Chile, Puerto Rico, and Argentina. The company also operates EXPO Design Centers across the U.S. and Villager's Hardware in New Jersey.

Lowe's Companies Inc. (LOW) is a retailer of home improvement products in the world, with specific emphasis on retail do-it-yourself and commercial business customers. Lowe's specializes in offering products and services for home improvement, home decor, home maintenance, home repair and remodeling and maintenance of commercial buildings. Lowe's principal customer groups are do-it-yourself retail customers and commercial business customers.

Neither of these companies are currently rated a BUY by our models. But, as we always note, our models run on fundamental financial data rather than news, rumours, etc. Over the past few weeks, stock in both companies has seen a run up in share prices by investors anticipating that the effects of both Harvey and Irma would boost the bottom line and quarterly results.

News media were awash in reports of the retailers moving hundreds of thousands of sheets of plywood, lots of generators, and other items needed by all those seeking to batten down the hatches ahead of the two massive storms.

Now, it is anticipated that home owners will be once again emptying the stores as they address damage and rebuild their homes.

Both retailers are ready, as they have greatly updated and expanded their supply chains so that they can ship new inventory and assist with the rebuilding phase. These retailers have worked with government officials to garner special transportation and other privileges that allows them to get quickly back up and running in the aftermath of disasters.

Depending on the damage, we would expect to see a definite boost for these firms in the aftermath of the storms. But, our ratings are driven by one-year forecast prices, and thus we we not see much change there until earnings and other data points are adjusted upwards to reflect the additional storm and recovery-driven sales numbers..

For today's bulletin, we provide full data for both Home Depot and Lowe's, and we have also provided links for our detailed valuation and forecast reports on both firms so that you may compare them in depth.

ValuEngine continues its HOLD recommendation on Home Depot for 2017-09-08. Based on the information we have gathered and our resulting research, we feel that Home Depot has the probability to ROUGHLY MATCH average market performance for the next year. The company exhibits ATTRACTIVE Company Size but UNATTRACTIVE Book Market Ratio.

You can download a free copy of detailed report on Home Depot (HD) from the link below.



ValuEngine Forecast
 
Target
Price*
Expected
Return
1-Month
159.96 0.19%
3-Month
159.35 -0.20%
6-Month
161.27 1.01%
1-Year
163.31 2.29%
2-Year
160.48 0.51%
3-Year
156.20 -2.17%

Valuation & Rankings
Valuation
2.73% overvalued
Valuation Rank(?)
44
1-M Forecast Return
0.19%
1-M Forecast Return Rank
66
12-M Return
21.64%
Momentum Rank(?)
73
Sharpe Ratio
1.26
Sharpe Ratio Rank(?)
95
5-Y Avg Annual Return
19.42%
5-Y Avg Annual Rtn Rank
87
Volatility
15.42%
Volatility Rank(?)
79
Expected EPS Growth
11.48%
EPS Growth Rank(?)
43
Market Cap (billions)
210.40
Size Rank
100
Trailing P/E Ratio
22.72
Trailing P/E Rank(?)
56
Forward P/E Ratio
20.38
Forward P/E Ratio Rank
34
PEG Ratio
1.98
PEG Ratio Rank
23
Price/Sales
2.16
Price/Sales Rank(?)
46
Market/Book
159.52
Market/Book Rank(?)
2
Beta
1.05
Beta Rank
36
Alpha
-0.03
Alpha Rank
46

 

DOWNLOAD A FREE SAMPLE OF OUR HOME DEPOT (HD) REPORT BY CLICKING HERE



ValuEngine continues its HOLD recommendation on Lowe's Companies Inc. for 2017-09-08. Based on the information we have gathered and our resulting research, we feel that Lowe's Companies Inc. has the probability to ROUGHLY MATCH average market performance for the next year. The company exhibits ATTRACTIVE Company Size but UNATTRACTIVE Book Market Ratio.

You can download a free copy of detailed report on Lowe's Companies Inc. (LOW) from the link below.



ValuEngine Forecast
 
Target
Price*
Expected
Return
1-Month
78.67 0.14%
3-Month
78.51 -0.06%
6-Month
78.10 -0.59%
1-Year
79.87 1.67%
2-Year
79.07 0.66%
3-Year
80.30 2.22%

Valuation & Rankings
Valuation
4.06% undervalued
Valuation Rank(?)
58
1-M Forecast Return
0.14%
1-M Forecast Return Rank
62
12-M Return
5.98%
Momentum Rank(?)
50
Sharpe Ratio
1.02
Sharpe Ratio Rank(?)
92
5-Y Avg Annual Return
19.07%
5-Y Avg Annual Rtn Rank
86
Volatility
18.65%
Volatility Rank(?)
73
Expected EPS Growth
10.94%
EPS Growth Rank(?)
42
Market Cap (billions)
76.43
Size Rank
99
Trailing P/E Ratio
17.91
Trailing P/E Rank(?)
69
Forward P/E Ratio
16.14
Forward P/E Ratio Rank
52
PEG Ratio
1.64
PEG Ratio Rank
28
Price/Sales
1.13
Price/Sales Rank(?)
65
Market/Book
17.85
Market/Book Rank(?)
9
Beta
1.05
Beta Rank
37
Alpha
-0.17
Alpha Rank
26

 

DOWNLOAD A FREE SAMPLE OF OUR LOWE'S (LOW) REPORT BY CLICKING HERE

 

ValuEngine.com is an Independent Research Provider (IRP), producing buy/hold/sell recommendations, target price, and valuations on over 5,000 US and Canadian equities every trading day.
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ValuEngine Capital Management LLC is a Registered Investment Advisory (RIA) firm that trades client accounts using ValuEngine's award-winning stock research.
Contact ValuEngine Capital at info@valuenginecapital.com
Visit www.ValuEngineCapital.com for more information

 

 
 
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