Core Viewpoint - Building-products distributor QXO, led by billionaire dealmaker Brad Jacobs, has agreed to acquire Kodiak Building Partners for approximately $2.25 billion [1] Company Summary - QXO is a significant player in the building products distribution sector, indicating its growth strategy through acquisitions [1] - Kodiak Building Partners is a smaller private distributor, suggesting that QXO is targeting expansion into niche markets or enhancing its product offerings [1] Financial Summary - The acquisition deal is valued at around $2.25 billion, highlighting QXO's financial capability and willingness to invest in growth opportunities [1]

Core Viewpoint - The Home Depot will host its Fourth Quarter and Fiscal Year Earnings Conference Call on February 24, 2026, at 9 a.m. ET, providing insights into its financial performance and future outlook [1] Company Overview - The Home Depot is the world's largest home improvement retailer, operating 2,356 retail stores and over 1,200 SRS locations across the U.S., Canada, and Mexico [1] - The company employs over 470,000 associates and is publicly traded on the New York Stock Exchange under the ticker symbol HD [1] - The Home Depot is included in the Dow Jones Industrial Average and the Standard & Poor's 500 index [1] Event Details - The earnings conference call will be accessible via a webcast, with a replay available starting at approximately noon on February 24 [1]

Core Insights - The Home Depot, Inc. is focusing on creating a comprehensive multi-category Pro network to address complex professional jobs amid macroeconomic uncertainty and housing market pressures [1] Group 1: Strategic Initiatives - The company is expanding digital tools specifically designed for complex Pro projects, including a project planning tool and an AI-driven blueprint takeoff tool to streamline the bidding and execution process for contractors [2] - The acquisition of GMS enhances Home Depot's ecosystem, contributing approximately $900 million in sales during eight weeks of the third quarter and expected to add about $2 billion in incremental sales in fiscal 2025 [3] Group 2: Market Position and Performance - Home Depot's emphasis on the Pro segment is crucial as it tends to be more resilient and generates higher transaction volumes compared to the DIY consumer segment, marking a significant shift in the company's operational model [4] - The company's shares have decreased by 6.9% over the past year, while the industry has seen an 11.7% decline, with competitors like Floor & Decor Holdings experiencing a 29.9% drop and Lowe's Companies showing an 8.6% increase [5] Group 3: Financial Metrics - Home Depot's forward price-to-earnings ratio stands at 25.38, higher than the industry's 23.19, indicating a Value Score of D, trading at a discount to Floor & Decor Holdings but at a premium to Lowe's [8] - The Zacks Consensus Estimate for Home Depot's current financial-year sales suggests a year-over-year growth of 3.3%, while earnings per share are expected to decline by 4.9% [9] - Sales estimates for the current year are projected at $164.69 billion, with a year-over-year growth estimate of 3.25%, and for the next fiscal year, sales are expected to rise by 4.25% [10]

Core Insights - The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) is a passively managed ETF launched on December 16, 1998, designed to provide broad exposure to the Consumer Discretionary - Broad segment of the equity market [1] - The ETF has become increasingly popular among retail and institutional investors due to its low costs, transparency, flexibility, and tax efficiency [1] Fund Overview - Sponsored by State Street Investment Management, XLY has over $23.14 billion in assets, making it the largest ETF in the Consumer Discretionary - Broad segment [3] - The ETF aims to match the performance of the Consumer Discretionary Select Sector Index, which represents the consumer discretionary sector of the S&P 500 Index [3] Cost Structure - XLY has annual operating expenses of 0.08%, positioning it as one of the least expensive ETFs in its category [4] - The ETF offers a 12-month trailing dividend yield of 0.8% [4] Sector Exposure and Holdings - The ETF is fully allocated to the Consumer Discretionary sector, minimizing single stock risk through diversified exposure [5] - Amazon.com Inc (AMZN) constitutes approximately 23.76% of total assets, with Tesla Inc (TSLA) and Home Depot Inc (HD) also among the top holdings; the top 10 holdings represent about 70.25% of total assets [6] Performance Metrics - As of February 9, 2026, XLY has experienced a loss of about 1.19% year-to-date but is up approximately 3.39% over the past year [7] - The ETF has traded between $88.17 and $124.52 in the last 52 weeks, with a beta of 1.25 and a standard deviation of 20.44% over the trailing three-year period, indicating medium risk [7] Alternatives - XLY carries a Zacks ETF Rank of 3 (Hold), suggesting it is a viable option for investors seeking exposure to the Consumer Discretionary sector [8] - Other ETF options in this space include iShares U.S. Home Construction ETF (ITB) and Vanguard Consumer Discretionary ETF (VCR), with respective assets of $3.04 billion and $6.20 billion [10]

Company Overview - The Home Depot, Inc. (NYSE:HD) has seen its shares decline by 5.5% over the past year, while experiencing an increase of 11.3% year-to-date [2] - UBS has reiterated a Buy rating for Home Depot with a price target of $430 per share, suggesting potential for improved performance as market conditions enhance [2] Market Sentiment - Jim Cramer has expressed confidence in Home Depot, indicating a desire to own the stock despite the challenges faced by the homebuilding sector [2][3] - Cramer noted the impact of high interest rates on the sector, suggesting that lower interest rates could benefit Home Depot's stock performance [2] Investment Perspective - While acknowledging Home Depot's potential, there is a belief that certain AI stocks may offer greater returns with limited downside risk [3] - Cramer’s charitable trust owns Home Depot, and he believes the stock is on the path to recovery, partly due to expectations surrounding Kevin Warsh's influence on the industry [3]

Market Overview - U.S. equities faced a challenging day on February 5, 2026, with significant sell-offs in technology stocks and negative job market reports impacting investor sentiment [1] - The S&P 500 fell 1.2% to close at 6,798.40, marking its sixth decline in seven trading days since reaching an all-time high [2] - The Nasdaq Composite dropped 1.6% to 22,540.59, while the Dow Jones Industrial Average decreased by 1.2% to 48,908.72 [2] - Bitcoin prices fell below $64,000, reaching their lowest level since October 2024, further exacerbating the downturn [2] Major Market Movers and Corporate News - Alphabet (GOOGL) saw a decline of 0.8% despite stronger-than-expected sales, as investors were concerned about projected capital expenditures for AI infrastructure, estimated at $175 billion to $185 billion for 2026, nearly double the $91.45 billion spent in 2025 [3] - Qualcomm (QCOM) experienced an 8.5% drop due to a disappointing outlook, citing a tightening global memory shortage affecting the smartphone market [4] - Advanced Micro Devices (AMD) fell sharply by 17.3% on a weak outlook, contributing to the semiconductor sector's struggles [4] - Uber Technologies (UBER) declined by 5.2% after missing earnings expectations, while Amgen (AMGN) surged 8.2% on positive earnings results [5] - Eli Lilly (LLY) jumped 10.3% due to strong sales of its drugs, and McKesson (MCK) soared 16.5% after exceeding profit and revenue expectations [5] - Peloton Interactive (PTON) plummeted 28% after reporting weaker-than-expected results, while Estee Lauder (EL) and Snap (SNAP) retreated by 19% and 12%, respectively [6] Job Market Developments - Amazon (AMZN) announced plans to cut approximately 16,000 corporate roles, while UPS revealed 30,000 job cuts [7] - Dow (DOW) reduced its workforce by 4,500 jobs, with Home Depot (HD) and Nike (NKE) also making cuts [7] Economic Indicators - Initial jobless claims for the week ending January 31 rose to 231,000, exceeding economists' estimates [9] - U.S. employers announced over 108,000 layoffs in January, the highest for that month since 2009, with job openings falling to 6.5 million in December, the lowest since 2020 [9] - The Consumer Price Index rose 2.7% over the year in December, indicating persistent inflation despite potential interest rate cuts by the Federal Reserve [10] Upcoming Market Events - Investors are awaiting the release of January U.S. Non-Farm Payrolls, Unemployment Rate, and Average Hourly Earnings data on February 6, which will provide further insights into the labor market [8]

Labor Market Overview - The labor market is facing challenges as major companies announce significant layoffs, with Amazon planning to cut about 16,000 corporate roles and UPS announcing 30,000 job cuts [1][8] - Dow has reduced its workforce by approximately 4,500 jobs, representing about 12% of its total employees, while Home Depot and Nike have also made smaller cuts [1] AI and Employment Concerns - A Reuters/Ipsos poll indicates that 71% of Americans are concerned that artificial intelligence could permanently replace their jobs [2] - Despite the fears surrounding AI, researchers suggest that the majority of layoffs are driven by federal workforce cuts, economic conditions, and company closures rather than AI [3][5] Layoff Statistics - In 2025, there were 1.2 million layoffs, with AI being blamed for fewer than 55,000 of those, which is about 4.5% [7] - Economic conditions accounted for 253,000 layoffs, while company closures led to another 191,000 job losses [7] AI's Role in the Workplace - Research indicates that when AI is implemented in jobs, it is often used as a tool rather than a replacement for human workers [9] - The success rate of AI-assisted tasks declines significantly for complex work, highlighting the need for human oversight [9] AI-Washing Phenomenon - Analysts suggest that some companies may be "AI-washing" layoffs, using AI as a scapegoat to divert attention from deeper organizational issues [10][11] - The term "AI-washing" refers to the practice of rebranding layoffs as part of an AI strategy to present a more favorable narrative [10] Long-Term Impact of AI - The Yale Budget Lab posits that the transformative effects of AI on the labor market may take years, similar to the historical impacts of computers and the internet [12]

Core Insights - The Home Depot is focusing on its Pro strategy to expand its market share among professional customers amid consumer uncertainty in the home improvement market [1][4] Group 1: Pro Strategy Development - The company is building a Pro ecosystem that integrates stores, supply-chain assets, digital tools, and dedicated sales teams to enhance efficiency for professional customers [2] - New digital tools, including a project planning tool and an AI-driven blueprint application, are being introduced to streamline complex processes into efficient workflows [2][8] - The integration of SRS and GMS is aimed at expanding reach into specialty categories like roofing and drywall, facilitating cross-selling opportunities [3][8] Group 2: Market Opportunity and Performance - Management sees significant potential in the Pro market for share gains, particularly as the company improves its capabilities in large-order deliveries and job-site services [4] - Home Depot's shares have decreased by 7.9% over the past year, outperforming the industry decline of 14.1%, while competitors have shown varied performance [5] - The company trades at a forward price-to-earnings ratio of 26.27, which is higher than the industry average of 20.95, indicating a premium valuation compared to some competitors [6] Group 3: Financial Estimates - The Zacks Consensus Estimate for Home Depot's current financial-year sales indicates a year-over-year growth of 3.3%, while earnings per share are expected to decline by 4.9% [9] - For the next fiscal year, sales are projected to rise by 4.3% and earnings by 4.4% [9] - Current quarter sales estimates are at $38.25 billion, with a year-over-year growth estimate of -3.67% [10]

Core Viewpoint - The Home Depot, Inc. has experienced underperformance compared to the broader market and specific ETFs, attributed to a challenging operating environment and consumer uncertainty [2][6]. Company Overview - The Home Depot, Inc. is a home improvement retailer based in Atlanta, Georgia, with a market capitalization of $372.9 billion, offering a variety of building materials, home improvement products, and services [1]. Stock Performance - Over the past year, HD shares have declined by 8.2%, while the S&P 500 Index has increased by nearly 15.5%. However, in 2026, HD stock has risen by 9.9%, outperforming the S&P 500's 1.9% increase year-to-date [2]. - Compared to the iShares U.S. Home Construction ETF, which has declined by about 4.3% over the past year, HD's year-to-date returns have surpassed the ETF's 6.6% gains [3]. Earnings Expectations - For the current fiscal year ending in January, analysts project HD's earnings per share (EPS) to decline by 4.9% to $14.50 on a diluted basis. The company has missed consensus estimates in three of the last four quarters [7]. Analyst Ratings - Among 34 analysts covering HD stock, the consensus rating is "Moderate Buy," consisting of 21 "Strong Buy" ratings, one "Moderate Buy," 10 "Holds," and two "Strong Sells" [7]. - The current analyst configuration is less bullish than three months ago, with 24 analysts previously suggesting a "Strong Buy" [8]. - Truist Financial Corporation has maintained a "Buy" rating on HD and raised the price target to $405, indicating a potential upside of 7.1% from current levels. The mean price target is $396.72, representing a 4.9% premium to current prices, while the highest target of $450 suggests a 19% upside potential [8].

Home Depot is up 1,100,000% since 1981.23% per year.For 45 years.And that doesn’t include dividends. ...