Home Depot Q2: Margin Pressure In Focus

Summary:

  • HD stock Q2 results beat estimates, but the weak retail environment and margin pressure are concerning.
  • The company lowered its guidance on gross and operating margins.
  • I expect the margin to keep being squeezed from both ends with higher  operating expenses and weakened demand in the next 1~2 years.
Home Depot Building Exterior

M. Suhail

HD stock Q2 recap

I last wrote on The Home Depot, Inc. (NYSE:HD) about three months ago. As you can see from the chart below, that article was titled “Home Depot: Don’t Buy The Recent Dip (Technical Analysis)” and was published by


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


As you can tell, our core style is to provide actionable and unambiguous ideas from our independent research. If you share this investment style, check out Envision Early Retirement. It provides at least 1x in-depth articles per week on such ideas.

We have helped our members not only to beat S&P 500 but also avoid heavy drawdowns despite the extreme volatilities in BOTH the equity AND bond market.

Join for a 100% Risk-Free trial and see if our proven method can help you too.

Leave a Reply

Your email address will not be published. Required fields are marked *