HD Supply Holdings reports Q2 numbers September 7

Last Updated: Tuesday, September 6, 2016 8:48 AM | Michael Fowlkes

What's Happening with HDS

Industrial Equipment Wholesaler HD Supply Holdings (HDS) is expected to report its second-quarter results on September 7. The company will post its quarterly numbers before the market open, with the consensus calling for earnings of $0.88 per share, up from $0.56 during the same period last year. The stock has gained 21.4% on the year.

Technical Analysis

HDS was recently trading at $36.51, just $0.48 below its 12-month high and $15.25 above its 12-month low. Technical indicators for HDS are bullish and the stock is in a strong upward trend. The stock has recent support above $35.40 and recent resistance below $37.00. Of the 13 analysts who cover the stock, 10 rate it a "strong buy”, and three rate it a "hold". The stock receives S&P Capital IQ’s 3 STARS "Hold" ranking.

Analysts' Thoughts

HD Supply has been a strong performer in 2016, but with a P/E of just 6, there appears to be a lot of value left in the stock. Analysts forecast earnings growth of 56.3% this year, and another 18.4% next year, which combined with the low valuation, indicates there is still plenty of upside left in the stock as long as the company is able to hit its lofty growth estimates. The company has a solid track record of posting better than expected earnings, while revenues tend to fall basically in-line with the street's consensus. This quarter the street expects another small earnings beat, with the whisper number calling for a profit of 89 cents per share, for a one penny beat. If the quarterly results are in-line or slightly higher than forecast, I see the stock trending higher post-earnings.

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