Home Depot (HD: $165)
Bull Market Report Target Price: $170
Bull Market Report Sell Price: $144
Earnings Date: Tuesday, 9:00 AM ET
Consensus: 3Q17
Revenues: $25 billion
EPS: $1.82
Year Ago Quarter Results
Revenues: $23 billion
EPS: $1.60
Key Things to Watch For in the Quarter
Home Depot is expected to report an 8% increase in earnings with a 9% increase in revenue for 3Q17. Home Depot has beaten estimates in each of the past four quarters, which has been reflected in the stock’s 30% increase over the course of the past year. The stock currently trades at a PE of 23 and yields 2%. Home Depot is one our favorite stocks for the long haul. Investors have realized incredible appreciation over the decades (445% since 2010) along with consistent income through the stock’s dividend payouts.
The stock has done so well that we hereby raise the Sell Price to $158 from $144. We can’t wait to raise our Target but will be patient and look for the stock to move $3-4 higher before we do.
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Splunk (SPLK: $69)
Bull Market Report Target Price: $75
Bull Market Report Sell Price: $60
Earnings Date: Thursday, 4:30 PM ET
Consensus: 3Q17
Revenues: $310 million
EPS: $0.14
Year Ago Quarter Results
Revenues: $245 million
EPS: $0.12
Key Things to Watch For in the Quarter
Analysts expect Splunk to report a 26% increase in sales along with a 16% increase in earnings for 3Q17. The stock has beaten estimates in each of the past four quarters and has appreciated 18% over the past year. Splunk successfully provides its customers with quality software that enables organizations to gain real-time operational intelligence. Gross margins of 70% indicates the firm's potential to generate significant profits down the road if it can improve on its operations. We strongly believe in management's ability to reduce their operating costs and in turn grow its bottom line.
As you can see from the chart, this one is volatile, but overall the stock has done well this year.
