Get started
HOME DEPOT INCHOME DEPOT INCHOME DEPOT INC

HOME DEPOT INC

No trades
See on Supercharts
Overview Financials News
Ideas
Discussions Technicals Forecast Seasonals Bonds

HD trade ideas

Home Depot | Fundamental AnalysisThe pandemic forced many companies to send their employees to work remotely. Millions of employees who were used to appearing in their offices every day had to make significant adjustments to their work. Home Depot stock ended the Dec. 7 trading session at a record high of $416.18 per share. The home improvement dealer has been a jaw-dropper winner since the start of the pandemic as people diverted their spare cash to improve their homes. Since March last year, Home Depot stock is up 160%. Since the stock is still close to its all-time high, you might wonder if Home Depot is a good investment at the moment. The company posted another fantastic quarterly earnings (for Q3 ended Oct. 31), surpassing Wall Street consensus forecasts on both the top and bottom line. Revenue of $36.8 billion and diluted earnings per share of $3.92 were 9.8% and 23.3% higher than the previous year, respectively. Same-store sales were up 6.1% year over year. Considering the harsh comparison to last year`s Q3, this was a great report from Home Depot. For the third quarter in a row, sales from professional customers, which include contractors, plumbers, and electricians, outperformed the DIY segment. During the pandemic, consumers refrained from more complicated projects since they weren't comfortable letting outsiders into their homes, but that dynamic has since changed. Almost half of Home Depot's sales come from professionals, so it's great to see this cohort of customers successfully recovering. Although customer transactions were down 5.5% in Q3, the average ticket size was up 12.9%, due in part to inflation across some product categories. Home Depot's operating margin was 15.7% and its ROIC) was an excellent 43.9%. Operating margin and ROIC outperformed competitor Lowe's since Home Depot has a larger Pro business, with professional contractors who frequent the store and spend more, resulting in better financial performance. As per management, Q4 got off to a fantastic start. "Combined sales for the first two weeks of the fourth quarter are slightly higher than the entire third quarter," Chief Financial Officer Richard McPhail said during the third-quarter earnings call. One of the essential tendencies contributing to Home Depot's business growth is rising home prices. Due to the U.S. housing shortage, median prices in October rose 13 percent year over year to $378,700, marking the 15th consecutive month of double-digit growth. The popularity of remote work has made many Americans reassess their housing conditions, which has supported activity in the housing market as well. Growing prices are having a wealth effect on consumers, who are looking at remodeling projects as an investment in their homes. Using skyrocketing equity is one way to finance projects. According to CoreLogic, U.S. homeowners with mortgages added $3.2 trillion in home equity in the third quarter, a 31.1% increase over the previous year. And even if the Federal Reserve plans to raise interest rates at some point in 2022, they will still be at historically low levels. So this is hardly a potential obstacle to Home Depot's business. Nevertheless, if consumers shift their spending away from home improvement projects to other retail categories, demand for Home Depot could dilute. This would surely put pressure on the company's stock. However, based on last quarter's financial performance, the company's momentum could not be stronger at the moment. As of Dec. 15, Home Depot stock was trading at a price-to-earnings (P/E) ratio of 27, the second-highest in a decade. The P/E ratio in the S&P 500 is nearly 29, so Home Depot looks like an engaging stock to own based on that comparison alone. But the company's business is much better than the average company, which strengthens the bulls' argument for the stock at the moment. With consistent revenue and earnings growth throughout its long history, Home Depot has already evinced its investment merits. And with its enormous scale in the home goods industry, the company is a fundamental part of today's U.S. economy. Even near its all-time high, the company's stock deserves serious consideration as an investment for your portfolio.
NYSE:HDLong
by FOREXN1
2
$HD Analysis & Key Levels $HD Analysis & Key Levels Things might get a little dippy from these heights… Higher probability to the downside… Technicals will bring this down to earth in a fury I think… Lots of nice targets below… —————— I am not your financial advisor, but I will happily answer questions and analyze to the best of my ability but ultimately the risk is on you. Check out my ideas, but also do your own due diligence. I am not a bull. I am not a bear. I just see what I see in the charts and I don’t pay too much attention to the noise in the news. Very often you have to look at my charts from the perspective of where I’m looking to sell puts. But I also do open positions still once in a while. If you want me to analyze any stock or ETF just leave me a comment and I’ll do it if I can. Have fun, y’all!! (\_/) ( •_•) / >🚀
NYSE:HDShort
by SPYder_QQQueen_Trading
8
Go to ATHGood report and on this event a break of resistance at 380. Target at least 410. Upside +9% ❤️ If you find this helpful and want more FREE forecasts in TradingView . . . . . Please show your support back, . . . . . . . . Hit the 👍 LIKE button, . . . . . . . . . . . Drop some feedback below in the comment! ❤️ Your Support is very much 🙏 appreciated!❤️ 💎 Want us to help you become a better Stock trader? Now, It's your turn! Be sure to leave a comment let us know how do you see this opportunity and forecast.
NYSE:HDLong
by QuantumLabSignals
HD looking to continue moving to new highs?I last spoke about this around mid October as it was breaking out of from $342.15. Since then it rallied higher and then consolidated for 3 weeks. This consolidation also created a base on base pattern. Now it's breaking out of the consolidation as earnings approach. The best part about this is that it was consolidating as the general market was in a small correction. This shows that there is institutional demand for HD and earnings may give another leg higher. Trade Idea: * Now's the perfect time to enter as the price is right above the broken resistance. * Very favorable risk/reward ratio. * If you're looking for a slight discount you can look for buying opportunities near the $366.48 area as that is the base of the tight range. * Looking at the weekly chart this may continue to consolidate but with earnings coming up I can see this moving higher from here.
NYSE:HDLong
by HaseebKhan_90
2