Home Depot's most recent trend suggests a bullish bias. One trading opportunity on Home Depot is a Bull Put Spread using a strike $220.00 short put and a strike $215.00 long put offers a potential 21.07% return on risk over the next 15 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $220.00 by expiration. The full premium credit of $0.87 would be kept by the premium seller. The risk of $4.13 would be incurred if the stock dropped below the $215.00 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 67.54 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
Housing Stocks: What’s the Best Play Now?
Tue, 03 Sep 2019 21:19:00 +0000
According to the financial media talking heads, the sky is falling because key interest rates are falling. But that's just not the case. Yes, rates have continued to collapse around the world, as China devalued its currency and the pound and euro are weak ahead of the October Brexit. So, money is still sloshing around and finding its way to the U.S.Source: Shutterstock The truth of the matter is that we remain in a very positive environment for stocks right now, as the U.S. remains the oasis around the world.Now, the falling interest rates are affecting all corners of the stock market, so, today, we're going to take a look at how they're impacting the housing market — and what's the right way to play that, as investors.InvestorPlace – Stock Market News, Stock Advice & Trading TipsHome sales have turned up after 18 months of trending lower. This isn't surprising, as mortgage rates are lower per month when interest rates are lower. So, this helps with housing affordability. Basically, more people can qualify for mortgages based on their income to debt ratio. And the lower the rates, the more homes are going to sell because they're more affordable.Every home requires upkeep (if you own a home, then you know exactly what I mean!), and The Home Depot (NYSE:HD) is the place to go for supplies, whether you're a contractor or a do-it-yourselfer. And that was very evident in the company's most-recent quarter.For the second quarter of fiscal year 2019, HD topped analysts' estimates. On overall earnings of $3.5 billion for the second-quarter, earnings per share increased 3.9% year-over-year to $3.17, up from $3.05 per share in the same quarter a year ago. The consensus estimate called for earnings of $3.08 per share, so Home Depot posted a 2.9% earnings surprise.Looking forward, company management expects sales to grow 2.3% year-over-year, which is below current analyst forecasts for 2.8% annual sales growth. The company also reaffirmed its earnings guidance, as it looks for earnings per share of $10.03. That's up from earnings of $9.89 per share in 2018.Now, heading into its earnings report, HD had earned a "C" for its Total Grade. However, as you can see below, the stock was upgraded to a "B" post-earnings.Following the quarterly report, buying pressure increased, boosting the stock to new 52-week highs. In fact, it hit more 52-week highs this week. Clearly, the "smart money" is still very much interested in this stock. That's also reflected in HD's strong Quantitative Grade-the most important variable in my stock grading formula. It's ultimately why I recommended it to my Growth Investor subscribers as a High-Growth stock.One such company is Dr. Horton, Inc. (NYSE:DHI), which as a homebuilder seems to be benefiting from the low interest rate environment. After all, at times when a mortgage costs less to obtain for the same house, more people will take the leap.That being said, in this battle of housing stocks, we can't forget about the homebuilders! Because there's a rising demand for homes, more are being built, too. There are plenty of folks who are getting older and downsizing, but they want homes with easy upkeep. So, they turn to the new models.So, against that landscape, let's see how THIS particular homebuilder is looking. For the company's fiscal third-quarter earnings report on July 30, DHI announced earnings of $1.26 per share on 10.6% year-over-year increase to $4.9 billion in revenue. This topped expected earnings of $1.07 per share on $4.5 billion in revenue. So, the company posted a 17.6% earnings surprise and an 8.9% sales surprise.For a fuller picture, here's how DHI stacks up in Portfolio Grader.Both its Fundamental and Quantitative Grades are B-rated, which isn't surprising given the solid earnings report and recent momentum. On August 22, DHI hit a new 52-week high of $50.64, and the shares traded less than a dollar from that level this past week.That's pretty impressive given the market selloff we've been facing. While good stocks like HD and DHI can't entirely avoid market selloffs, they do tend to bounce back quickly and with force. As you can see in the one-month chart below, even at a time when the S&P 500 is down roughly 3%, DHI is UP 4.6%, while HD is up a good 11.9%!Like D.R. Horton, Home Depot just hit new 52-week highs.While both stocks are B-rated in Portfolio Grader, I believe HD will be the winner over the long term. Over the years, Home Depot has become the world's biggest home improvement retailer, and it offers over one million products in its more than 2,000 stores across the U.S., Canada and Mexico for DIY shoppers, professional contractors and others.The good news is that the "smart money" on Wall Street knows this — and is showing a clear preference for "Bulletproof" stocks like this one. They've already tipped their cards by pouring their capital in. And the buying pressure that results from this is exactly what my Portfolio Grader system is designed to spot!There's Another Factor At Work Here, TooHaving spent time on Wall Street, these big institutional investors quickly learn that you need dividends to grow a portfolio over time, and I think that's another reason for this clear preference. The income really helps smooth over the rough patches.Dividend growth stocks are especially important today – when the global bond market is just going haywire. And even the 30-year Treasury can't be relied upon for good yield anymore. Recently, its yield dropped below 2% for the first time ever!So — whether you're managing big institutional cash, or your own portfolio – you're going to need what I call the Money Magnets.Not only did these stocks earn an A in my Portfolio Grader, thanks to strong buying pressure and great fundamentals …The stocks also earn an A in my Dividend Grader. These stocks are able to pay great yields – and have the strong business model to back it up!All in all, I've got 27 strong dividend growth stocks for you, almost all of which yield more than the S&P 500. These stocks are poised to do well as we continue to see international capital flow to the U.S. markets. Click here to see how I found these stocks, and how you can get great performance out of YOUR portfolio — come what may.Louis Navellier is a renowned growth investor. He is the editor of four investing newsletters: Growth Investor, Breakthrough Stocks, Accelerated Profits and Platinum Growth. His most popular service, Growth Investor, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 "Boring" Stocks With Exciting Prospects * 15 Cybersecurity Stocks to Watch as the Industry Heats Up * 5 Healthcare Stocks to Buy for Healthy Dividends The post Housing Stocks: What's the Best Play Now? appeared first on InvestorPlace.
Housing Stocks: Surprising Picks as Leaders of the Coming Rally
Tue, 03 Sep 2019 20:29:14 +0000
When I saw the headline below last Tuesday, it made me angry. Really angry. Check this out.Source: Shutterstock A "Lehman-like" market disaster could happen this week, analyst warnsSeriously?InvestorPlace – Stock Market News, Stock Advice & Trading TipsThe analyst cited negative sentiment triggered by the inversion of the yield curve and how it correlated to 2008. (Here's the article if you really want to read it.) I think he needs to be held responsible if he's wrong.I am sick of hacks trying to make names for themselves with insane and irresponsible Doomsday Calls. Do yourself a favor and ignore them. Instead of becoming fearful with these crazy calls, now is the time to set yourself up for big profits.I think we're headed for one of the greatest "melt-ups" (as my colleague Steve Sjuggerud accurately calls it) over the next 12-18 months. The new issue of Investment Opportunities will focus on stocks that I believe will be among the leaders of that rally, and I want to give you a preview of my analysis today. Already Moving HigherLet's dispense quickly with the idea that a recession is around the corner. I shared my full market outlook with you this weekend, but I've written before about the inverted yield curve and talked about it at length in a recent MoneyLine podcast (which you can listen to here).I'll share one stat with you now: Over the last 40 years, an inverted yield curve has actually been more of a buy signal than a recession indicator. Since 1978, the market has gained 20%+ on average one year after the inversion event when the 10-year Treasury begins to yield less than the two-year Treasury.Add in the likelihood that the Fed will lower interest rates a couple more times this year, and the odds of a major rally increase.But even if you're skeptical, please don't ignore a tried-and-true buying opportunity that so many other investors are missing amid the panic.I'm talking about housing stocks. I know. They don't sound as exciting as next-generation batteries, artificial intelligence, autonomous vehicles, or personalized medicine. But who cares — as long as they can make us money?Take a look at the iShares U.S. Home Construction ETF (BATS:ITB). It broke above $40 last week for the first time since last June. That is a potentially major breakout going back to levels from 18 months prior. It also broke out of a consolidation phase that lasted about three months.Those are two bullish technical indicators, and I see more upside ahead with very low housing stock valuations and strong fundamentals.You may not hear much about strong fundamentals in the current environment, but they're there. Home Depot (NYSE:HD) is at all-time highs, and Lowe's (NYSE:LOW) is within about 6% of its peak. Both reported solid sales growth, as did consumer bellwethers Walmart (NYSE:WMT) and Target (NYSE:TGT). This tells us that the consumer is doing pretty well, and so is the housing market.It's simple if you ignore the noise and doomsday headlines. Long-term interest rates are down, which means mortgage rates are, too. Any way you slice it, lower mortgage rates boost housing. They make homes more affordable.We already see potential home buyers on the move. Mortgage applications (the orange line below) have turned sharply higher as rates (the blue line) have fallen.Note how mortgage originations fell to their lowest level since mid-2014 earlier this year but are back on the upswing — to their highest levels in about two years, in fact. The last time mortgage rates were this low (late 2016), mortgage originations spiked above $600 billion. What to Buy NowI look for a similar spike to occur in the next few quarters. A move from $344 billion in the first quarter to over $600 billion would be a massive 75% surge … and would light an even bigger fire under housing stocks.The opportunity is more than just low rates. There are multiple catalysts to drive housing stocks higher in the coming months, including high employment, consumers' willingness to spend, still-low valuations, and millennials buying homes as they start families. That last one is especially big and could last for years, as we are in the early stages of the greatest wealth transfer in U.S. history, from the baby boomers to the millennials.I focus a lot on cutting-edge trends and breakthroughs, like batteries that will change the way we live and communicate. That's where a lot of the life-changing gains will come from. But I don't ignore more "traditional" trends like housing when the time is right, like now.I'll have my full analysis on housing stocks and at least one related stock recommendation in the new Investment Opportunities issue this Thursday. I wanted to let you know today so you can have them on your radar, too.Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of Investment Opportunities and Early Stage Investor. He has dedicated his career to getting investors into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA), +1,044% in Tesla (TSLA), +611% in Liquefied Natural Gas Limited (LNGLY), +324% in Bitcoin Services (BTSC), just to name a few. If you're interested in making triple-digit gains from the world's biggest investment trends BEFORE anyone else, click here to learn more about Matt McCall and his investments strategy today. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Safe Stocks to Buy This Summer * The 5 Best Telecom Stocks to Buy Now * 6 Innovative Stocks With Big Long-Term Growth Potential The post Housing Stocks: Surprising Picks as Leaders of the Coming Rally appeared first on InvestorPlace.
Why Lowe’s Stock Gained 11% in August
Tue, 03 Sep 2019 18:40:00 +0000
The home improvement giant is finally closing the gap with its biggest competitor.
Hurricane Dorian approaches: Here's how hurricanes have hurt Georgia companies (Slideshow)
Tue, 03 Sep 2019 16:45:32 +0000
Georgia companies hurt by hurricanes in recent years include The Home Depot Inc., Delta Air Lines Inc., Westrock Co., Aaron's Inc. and Floor & Decor Holdings.
3 Reasons You Should Buy into the Home Depot Stock Bump
Tue, 03 Sep 2019 14:11:03 +0000
Home Depot (NYSE:HD) is much like its publicly traded equity: both don't draw much attention until you need them. Put another way, Home Depot stock is usually a safe, reliable investment, but it is a tad on the boring side.Source: Helen89 / Shutterstock.com However, shares have been doing something recently that they don't usually: being interesting. While the benchmark indices like the Dow Jones have been struggling to gain traction in August, the HD stock price has put on a remarkable run. Since the first of the month, shares gained nearly 7%.But at the same time, Home Depot stock is at record levels. Typically, even the strongest and most stable names experience volatility in a market-wide downturn. Therefore, it seems unreasonable to jump aboard HD, especially when headwinds like the U.S.-China trade war and rising economic fears have gripped investors.InvestorPlace – Stock Market News, Stock Advice & Trading TipsOf course, I can understand the concerns here. But if you want exposure to recession-resistant companies, HD stock is among your best bets. Here are three reasons why: 1\. Home Depot Stock Is Insulated from AmazonIn retrospect, the late 1990s to early 2000s was the peak of American shopping malls' cultural influence. Since then, brick-and-mortar retailers had to contend with the threat of e-commerce. And when I – or anyone – refers to e-commerce, we're talking about Amazon (NASDAQ:AMZN). * 7 Best Tech Stocks to Buy Right Now You only need to look at the technical charts for traditional retailers like Macy's (NYSE:M) or Nordstrom (NYSE:JWN) to recognize the damage rendered by Amazon. Although these two names are renowned brands across high-end shopping centers, they can't escape the ecommerce onslaught. But Home Depot stock? Fortunately for stakeholders, they won't have to worry about digital disruption.The biggest reason why is that most people who shop at Home Depot do so for renovations or repairs. Neither is an exact science, which essentially insulates the HD stock price from Amazon's encroachment.From my experience with repair work done on my home, the process is a hit-or-miss affair: pipes don't quite work right, or components somehow are either too big or too small. And don't get me started on repainting the interior. I had no clue how many different shades of white existed.I say all this to illustrate a point: Home Depot's business necessitates a physical presence. In fact, going digital would be a nuisance to its millions of customers. Therefore, I'm confident that the HD stock price can hold up better than most retail names. 2\. HD Stock Benefits from Secular DemandDuring bull markets, cyclical investments like tech stocks get all the love. And that's really not a surprise. When the money is flowing, people feel comfortable tacking on greater risk. If their investments fail, hey, the money is still coming in from other sources.But in recessionary markets, Home Depot stock and its rivals like Lowe's Companies (NYSE:LOW) fare better than their high-growth counterparts. It's much easier to predict the company's revenue streams but there's not as much guesswork involved. Aside from obvious technological improvements, construction materials are construction materials.Moreover, HD stock benefits from consistent, secular demand. Yes, a recession will hurt Home Depot like it would any other company. However, consumers don't really have a choice if they the home-improvement giant's services.Again, I speak from personal experience, but I suspect your experiences aren't dissimilar: your plumbing doesn't decide to conk out based on when it's most convenient to your schedule.Plus, I actually see some potential tailwinds for Home Depot stock if we suffer a recession. For instance, home sales have been plummeting even prior to the trade war escalation. Also, the average price of homes sold has started to flatline. Understandably, people are hesitant toward exposing themselves to unnecessary financial risk.But homeowners might take advantage of this lull and focus instead on renovating their properties. Then, when housing comes back, they could reap greater returns. Invariably, such circumstances will only help bolster HD stock. 3\. Mitigating China RisksTurn on the news and chances are, you'll hear various analyses about the longer-term impact of the U.S.-China trade war. And while Home Depot stock does have a secular, insular business, it too suffers from supply chain cost increases.According to Home Depot CEO Craig Menear, the tariffs on Chinese goods will have a "cost impact" on U.S. revenue. This amounts to 2%, or $2 billion.However, the company's suppliers have thought ahead, shifting some manufacturing outside China. These location shifts are toward friendlier nations, including Taiwan, Vietnam, Thailand, even back home stateside.Of course, retailers broadly have pushed these cost increases to their customers and that worries economists. But for Home Depot stock, burdening the consumer base isn't as atrocious as it is for a discretionary-spending retailer.I go back to the point about secular demand. If your home needs repair, you're going to pay the increased material costs because you have to. While it's a cynical situation, it really does favor HD stock.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy Down 10% in the Past Week * 15 Retail Survivors to Buy for the Long Run * 7 Stocks That Wall Street Thinks Could Rise 50% Or More The post 3 Reasons You Should Buy into the Home Depot Stock Bump appeared first on InvestorPlace.
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