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Home Depot Inc (NYSE: HD) | Sales Projections & Market Trends

The Home Depot is the largest home improvement retailer targeting the DIY segment as well as contractors.  It operates nearly 2300 stores in North America. Sales and share price have been steadily growing, partially due to new store openings. Traditionally this segment has been seen to be more resistant to E-commerce because its sales are driven by higher ticket items. However, the recent tie-up between Sears (for its Kenmore brand) and Amazon resulted in a decline in share price for this company.

Sales of The Home Depot are highly correlated with employment levels in various sectors. Manufacturing employment is, in fact, a leading indicator for sales of The Home Depot. This implies that Home Depot sales are affected in the quarter following a change in manufacturing employment trends.

 

Home Depot Inc (NYSE: HD) correlates with the above macroeconomic indicators. 

Home Depot Inc (NYSE: HD) correlates with the above macroeconomic indicators. 

 

SalesForekast™ projects Home Depot to grow slightly slower than their best fit line. Although sales revenue is forecasted to increase steadily over the next few quarters, Home Depot may find it difficult to keep up with historical growth. This may be a result of difficulties expanding through new stores.

 

SalesForekast™  projections for Home Depot Inc (NYSE: HD)

SalesForekast™ projections for Home Depot Inc (NYSE: HD)

 

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