Home Depot (HD) Offering Possible 12.61% Return Over the Next 3 Calendar Days

Home Depot's most recent trend suggests a bullish bias. One trading opportunity on Home Depot is a Bull Put Spread using a strike $175.00 short put and a strike $170.00 long put offers a potential 12.61% return on risk over the next 3 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $175.00 by expiration. The full premium credit of $0.56 would be kept by the premium seller. The risk of $4.44 would be incurred if the stock dropped below the $170.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Home Depot is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Home Depot is bullish.

The RSI indicator is at 70.93 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for Home Depot

Will Home Depot Raise Its Dividend in 2019?
Sat, 12 Jan 2019 13:17:00 +0000
The home-improvement giant saw a rare share-price decline last year, but dividends are still looking strong.

3 Retail Stocks for Your Watch List
Thu, 10 Jan 2019 15:41:00 +0000
Not every retailer is a sitting duck for Amazon, and these three companies carved out a comfortable niche to thrive in.

Walmart Stock Is Still Just a Dud Compared to Other Retail Stocks
Thu, 10 Jan 2019 15:22:10 +0000
Some people consider Walmart (NYSE:WMT) stock to be an investment that people should buy and hold "forever." Sadly, the days of "buy and forget" are long gone for Walmart stock.

While the largest retailer has plenty going for it, including seventeen straight quarters of rising comp sales and a rapidly growing U.S. e-commerce business, which gained 42% in the most recent quarter, there are just as many reasons to be cautious when it comes to WMT stock.

For instance, selling, general and administrative expenses rose more than 12% between 2015 and 2018 ($93.4 billion to $104.7 billion), while revenue gained 3% ($485.6 billion to $500 billion) during that same time. Rising wages and pricey acquisitions such as its $16 billion deal for Flipkart will hurt WMT's profits for the foreseeable future.

InvestorPlace – Stock Market News, Stock Advice & Trading Tips

* 10 Key Emerging-Market Stocks to Buy for Contrarian Investors

The average 52-week price target for the Walmart stock price is $107, which implies a 13% upside to current levels. I am not sure what the analysts are smoking given their consensus forecasts are calling for 2019 revenue growth of 2.9%. This matches last year's 2.9% sales gain ($485.6 billion to $500 billion) exactly. Notably, Walmart stock slumped nearly 6% in 2018 after going on a 43% tear a year earlier. They appear to be running on fumes. I realize that the law of large numbers applies to the Walmart stock price but there are plenty of other retail stocks that are a better choice.

### Better Bets Than Walmart Stock

WMT stock trades at a forward price-to-earnings multiple of 20 which isn't particularly compelling given that peers such as Home Depot (NYSE:HD), Target (NYSE:TGT) and TJX (NYSE:TJX) are valued cheaper, offer more potential upside and are growing at a faster rate than the Bentonville, Ark.-based company. They are all worth buying despite their recent challenges.

HD currently trades at roughly a 15% discount to its average 52-week price target of $204. Its forward price-to-earnings ratio is 17.3 and analysts are expecting 2019 revenue growth of 7.3% for the top home improvement chain. As the real estate market cools, the chain stands to benefit since homeowners may be willing to spend more on improving their homes as opposed to buying a new home. HD is also one of the best-run companies in the sector.

To be sure, TGT took plenty of lumps in 2018. CEO Brian Cornell spooked Wall Street during the most recent quarter when he reported disappointing results as increased spending on e-commerce and higher wages eroded profit margins. The company, though, is doing fine as evidenced by comp sales, which were up 5.7% for the most recent quarter. Even with its problems, TGT is a better stock than WMT stock.

* 7 Stocks at Risk of the Global Smartphone Slowdown

Analysts are expecting TGT 2019 sales growth of 4.8%. The chain's forward P/E is 12.4 and TGT stock is currently trading at a discount of about 20% to its average 52-week price target of $84.

Finally, there's TJX. The off-price retailer got hammered last year after posting disappointing third-quarter earnings as rising freight and labor costs eroded its profit margins. TJX, which sells top brands such as Tommy Hilfiger at rock bottom prices, continues to buck industry trends and open stores. But, thanks to its mastery of the "treasure hunt" format, TJX probably had a jolly holiday season and should fare well in an increasingly competitive retail sector

TJX carries a forward P/E multiple of 18.25. Its stock trades at a discount of about 15% to its average 52-week price target of $54.40. Wall Street analysts are expecting TJX's 2019 sales to rise by 8.2%.

As of this writing, Jonathan Berr did not hold a position in any of the aforementioned securities.

### More From InvestorPlace

* 2 Toxic Pot Stocks You Should Avoid
* 10 Stocks You Can Set and Forget (Even In This Market)
* 10 Virtual Assistants for the Future of Smart Homes
* 7 5G Stocks to Buy as the Race for Spectrum Tightens

Compare Brokers

The post Walmart Stock Is Still Just a Dud Compared to Other Retail Stocks appeared first on InvestorPlace.

Should You Invest in the Fidelity MSCI Consumer Discretionary Index ETF (FDIS)?
Thu, 10 Jan 2019 13:57:01 +0000
Sector ETF report for FDIS

Why Did Barclays Downgrade Lowe’s?
Thu, 10 Jan 2019 13:04:53 +0000
On January 9, Barclays downgraded Lowe’s (LOW) from “overweight” to “equal weight.” Barclays lowered its target price from $120 to $105.

Related Posts

 

MarketTamer is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of MarketTamer are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.


This company makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.


The content on any of MarketTamer websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options. The www.MarketTamer.com educational training program and software services are provided to improve financial understanding.


The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.