Evercore ISI analyst Greg Melich noted that Home Depot (HD) reset both sales and margin expectations for 2020 at its analyst day and he believes consensus estimates are likely to come down 3%-5% for 2020 following the event. However, the strength seen in the firm's Home Improvement Lead Indicator leads him to believe Home Depot's sales are likely to accelerate next year and its 3.5%-4% comp sales growth guidance could prove conservative. Walmart (WMT) and Costco (COST) shares have "broken out on upside valuation" based on their high returns, traffic growth, and share gains and "Home Depot looks like the next one to us," concluded Melich, who keeps an Outperform rating on Home Depot shares.