Fast Money Blog- 5/20/22

This week two stocks in the home improvement sector released earnings.

On Tuesday, May 17th, The Home Depot, Inc. (HD) released their Q1 2022 earning results.  The company reported revenue of $38.9 billion, an increase of 3.8% year-over-year and the highest first quarter sales in company history.  Comparable sales for the 1st quarter increased 2.2% year-over-year, while comparable sales in the U.S. were up 1.7%.

On Wednesday, May 18th, Lowe’s (LOW) released their Q1 2022 earning results. Lowe’s top-line revenue in the first quarter was $23.7 billion, falling 3.1% year-over-year. Comparable-store sales dropped more than expected, falling 4%, with comparable U.S. sales decreasing 3.8%.

Both Home Depot and Lowe’s delivered respectable earnings (keep in mind that Q1 is typically a lower revenue generating quarter for home improvement), but the market won’t reward them until the Fed is done raising interest rates.

All in all I think both of these stocks are good dates for covered call writing and long-term holds.

Tyrone Jackson, The Wealthy Investor