Australia markets closed

Housing Starts, Permits Up Year Over Year; Q3 Retail Mixed

Mark Vickery

Tuesday, November 19, 2019


New Housing Starts data for the month of October were mixed slightly, but still up year over year. Housing Starts last month came in at 1.314 million seasonally adjusted, annualized units, lower than the 1.325 million expected. But this was up from the upwardly revised 1.266 million units reported for September. This demonstrates growth of 3.8%.


Building Permits — a leading indicator of future starts — rose 5% to 1.461 million, better than the 1.390 million anticipated. This may be an indication of future strength in the housing market, which has spent 4 of the previous 14 quarters in negative territory in terms of Gross Domestic Product (GDP). It is yet another indication that, while there may be global economic headwinds, the U.S. looks to have cornered the market on growth strength.


TJX Companies TJX outperformed expectations in its Q3 report released ahead of today’s opening bell, beating earnings estimates by 2 cents to 68 cents per share on sales of $10.451 billion which narrowly outpaced the Zacks consensus by 1.21%. Comps rose 4%, much better than the 2.3% analysts were looking for. The company also raised guidance.


Shares of TJX had already been ahead of the S&P 500’s gains year to date, up 33.1%. Shares are up another 1.6% in today’s pre-market trading activity. For more on TJX’s earnings, click here.


Home Depot HD, on the other hand, reported in-line earnings of $2.53 per share, and two cents higher than the year-ago quarter, though revenues slightly missed expectations to $27.22 billion. Based on the above housing and permits data, this would be expected to say good things about Home Depot’s future. Yet at +39% year to date, mixed results like these are sending Home Depot stock down 3.7% in today’s pre-market. For more on HD’s earnings, click here.


The biggest Q3 earnings disappointment this morning came from Kohl’s KSS, which underperformed everywhere you look: 74 cents per share versus 85 expected, down 24.5% from the year-ago quarter; $4.625 billion in sales which missed the $4.628 billion a year ago and the expected $4.668 billion; and lowered full-year guidance, from $5.15-5.54 per share originally anticipated to $4.75-4.95 today. Shares have fallen nearly 13% on the news. For more on KSS’ earnings, click here.


Mark Vickery

Senior Editor


Questions or comments about this article and/or its author? Click here>>


Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>

Click to get this free report The Home Depot, Inc. (HD) : Free Stock Analysis Report The TJX Companies, Inc. (TJX) : Free Stock Analysis Report Kohl's Corporation (KSS) : Free Stock Analysis Report To read this article on click here. Zacks Investment Research Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report