Fast Money Blog- 11/18/22

This week the home improvement segment showed significant revenue growth, as both Home Depot and Lowe’s released earning reports.

On Tuesday, November 15th, The Home Depot, Inc. (HD) released their Q3 2022 earning results. The company reported revenue of $38.8 billion, an increase of 5.6% year-over-year.

Comparable sales for the 3rd quarter increased 4.3% year-over-year.

In addition, Home Depot customers spent an average of 8.8% more per transaction during the quarter.

On Wednesday, November 16th, Lowe’s Companies, Inc. (LOW) released their Q3 2022 earning results. Lowe’s top-line revenue in the third quarter was $23.5 billion, up from $22.9 billion year-over-year.

U.S. comparable sales increased 3% for the quarter

Sales at Lowes.com increased 12%. The retailer also reported 19% growth in its Pro sales category, which serves professional customers including contractors, specialty tradesmen and property managers. This is great news for Lowe’s as they have been actively targeting the professional customers that make up the large majority of Home Depot customers.

During the latest quarter, the company also engaged in the buy back of 20.5 million shares for $4 billion while simultaneously paying a dividend of $666 million.

It’s important to note that companies that buy back their shares from the open market frequently see an increase in stock price because they’ve decreased the size of the float.

30 Day Stock Market Overview

Question: Is This Recent Market Rally Sustainable?

Answer: It’s difficult to say, but the following stocks are all up dramatically over the past 30 days:

Home Depot (HD)

30 Day Low of $268 per share

30 Day Hight of $315

Lowe’s (LOW)

30 Day Low of $177.95

30 Day High of $221

Microsoft (MSFT)

30 Day Low of $215

30 Day High of $240

Visa (V)

30 Day Low of $186

30 Day High of to $210

Apple (AAPL)

30 Day Low of $135

30 Day High of $150

So what’s my take on all of this market activity?

Because we’re in the holiday buying season I expect to see the market rise sharply over the next 90 days, as consumer spending converts into 4th Quarter top-line revenue growth.

So stay open and stay positive as the market begins the retracement process.

Tyrone Jackson

The Wealthy Investor