Expectations for Home Depot In-Line with Trefis Forecasts
Trefis member predictions for Home Depot’s market shares in Plumbing, Electrical & Kitchen equipment and Paint & Flooring products are in-line with Trefis forecasts. We estimate Plumbing, Electrical & Kitchen constitutes around 31% of Home Depot’s (NYSE:HD) stock, in comparison to 18% for Paint & Flooring business.
Over the last week, Trefis members created forecasts for two key drivers of HD’s stock: (1) Home Depot Plumbing, Electrical & Kitchen Market Share and (2) Home Depot Paint & Flooring Market Share. The member forecasts suggest that both drivers will roughly trend in-line with the estimates of the in-house team of analysts at Trefis.
Home Depot mainly competes with Lowe’s (NYSE:LOW) in home improvement products market. We currently have a Trefis price estimate of $36 for Home Depot’s stock, about 28% above the current market price of $28.
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Home Depot’s stock is quite sensitive to (1) Home Depot Plumbing, Electrical & Kitchen Market Share and (2) Home Depot Paint & Flooring Market Share. Below are charts showing recent estimates created by Trefis members for the two drivers in detail.
1. Home Depot Plumbing, Electrical & Kitchen Market Share
The average of Trefis member forecasts for Home Depot Plumbing, Electrical & Kitchen Market Share indicate an increase from around 22% in 2010 to 23% by 2016, in-line with the baseline Trefis estimates. The member estimates imply an upside of 1% to the Trefis price estimate for Home Depot’s stock. In the past, Home Depot Plumbing, Electrical & Kitchen Market Share has decreased from 23% in 2005 to 22% in 2009.
Disagree? You can drag the forecast trend-line above to express your own view, and see the sensitivity of Home Depot’s stock to Home Depot Plumbing, Electrical & Kitchen Market Share.
Our complete analysis for Home Depot Plumbing, Electrical & Kitchen Market Share is here.
2. Home Depot Paint & Flooring Market Share
The average of Trefis member forecasts for Home Depot Paint & Flooring Market Share indicate an increase from around 30% in 2010 to 32% by 2016, in-line with the baseline Trefis estimates. The member estimates imply a small downside to the Trefis price estimate for Home Depot’s stock. In the past, Home Depot Paint & Flooring Market Share decreased from around 41% in 2005 to 30% in 2009.
Disagree? You can drag the forecast trend-line above to express your own view, and see the sensitivity of Home Depot’s stock to Home Depot Paint & Flooring Market Share.