Retailer Gives Cautious Outlook For Home Depot Stock

Home Depot, one of the country's largest home improvement retailers, dropped its share price in early Tuesday trading following a disappointing performance forecast from the company.

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Recently, the following actions have been taken:

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• A 5% drop was recorded in the stock price for Lowe's.
• The share price of Home Depot dropped by 6% in the last few days.

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As part of its cautious outlook for this year, Walmart has warned that comparable sales in the U.S. are expected to rise by about 2% to 2.5% this year, less than analysts had predicted. Those results overshadowed Tuesday's results from the big-box retailer, which showed a strong quarterly sales increase as a result of customers gravitating towards it for products like food and other essentials. There was a slight increase in the price of its shares.

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A decline in profit is expected at Home Depot this year according to the company's forecast. As a result of the pandemic, the chain enjoyed a surge in home improvement projects, but in recent years, this has been offset by the shift of consumers towards spending their money on experiences instead of home improvements.