Truist raises estimates for Home Depot, Lowe’s on stronger sales
Investing.com -- Truist Securities raised its comparable sales estimates for Home Depot (NYSE: HD ) and Lowe’s (NYSE: LOW ) for the fourth quarter of calendar year 2024 on stronger-than-expected sales trends based on its proprietary card data.
The firm now expects Home Depot’s U.S. and enterprise comparable sales to rise 0.5%, up from its prior forecast of a 2.0% decline. Similarly, Lowe’s comp sales are now projected to decline by 1.0%, an improvement from the previous estimate of a 2.0% drop.
Investor expectations for both retailers suggest slightly positive comps for Home Depot and modest declines for Lowe’s, Truist noted.
Sales trends at Walmart (NYSE: WMT ) and Advance Auto Parts (NYSE: AAP ) appear to be in line or slightly ahead of estimates, the firm said. Meanwhile, Genuine Parts Co (NYSE: GPC ) is expected to see 4% total sales growth in its auto segment, though industrial sales are forecast to decline by about 3%.
Truist also flagged potential tariff-related cost pressures, noting that price increases could be likely if companies seek to offset higher costs from trade policy changes.