5 Stocks To Watch This Week 2/23/15

(Photo Credit: Mike Mozart)

Home Depot – Tuesday

Home Depot (HD), the largest home improvement retailer in the United States will report 4th quarter earnings before the opening on Tuesday. The company’s stock has been soaring in recent years on positive housing recovery data and a controlled expansion into e-commerce. 

On last quarter’s earnings call freshly appointed CEO Craig Menear said, “”The U.S. housing recovery continues to track in line with our expectations, with home price appreciation and housing turnover being the drivers of growth for our business,”. Monday morning the housing recovery hit a bump in the road as existing home sales came in 4.8% below crowdsourced expectations.

Although January’s existing housing sales were poor, Tuesday contributing analysts on Estimize expect Home Depot’s earnings to continue rising and reflect overall housing sector growth. The consensus expectation is that Home Depot will report earnings of 91 cents per share, 2 cents better than Wall Street is forecasting. 

Estimize contributors also believe Home Depot’s 4th quarter profits will improve by 25% compared to last year. That would be a small improvement on top of the 23% and 21% gains reported respectively over the past 2 quarters.

Home Away – Tuesday

Vacation home rental company Home Away (AWAY) is set to deliver its earnings on Tuesday after the close. Strong results from Marriott and Priceline suggest that American travel habits are back on the upswing. 

There may be juice in the travel industry right now, but HomeAway competes most directly with privately held Airbnb. Airbnb’s most recent disclosures contain evidence of a “dramatic acceleration” according to Cowen and Co. Cowen expects Airbnb to overtake HomeAway’s booking numbers within the next 3 years.

This quarter Estimize contributors are projecting earnings to rise 5 cents per share from 8 cents in EPS to 13 cents. Earnings of 13 cents per share would leave HomeAway 1 cent shy against the Wall Street consensus.

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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