Home Depot stock: buy or sell?
Updated on:
September 20th, 2019
5
The Home Depot, Inc. operates as a home improvement retailer. It operates The Home Depot stores that sell various building materials, home improvement products, and lawn and garden products, as well as provide installation, home maintenance, and professional service programs to do-it-yourself, do-it-for-me (DIFM), and professional customers.
Should I buy Home Depot stock?
Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. That's why is so important to choose your own trading strategy that fits your character as inversor. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.Currently, Home Depot stock doesn't match any of these trading strategies, so our recommendation is not to buy.
| Buy setup | Elegible |
|---|---|
| New all-time high | No |
| New 52 week high | No |
| Price crossing up 200d MA | No |
| 100d MA crossing up 200d MA | No |
Is Home Depot stock a buy?
Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness.
At Stocks2.com, we detected 15 ratings published for HD stock in the last 30 days. The general sentiment of these ratings is bullish for HD stock, with 8 positive ratings.| Date | Analyst / Broker | Previous rating | Current rating |
| 2019-9-19 | DZ Bank | Hold | Sell |
| 2019-9-17 | Guggenheim | Buy | Neutral |
| 2019-9-13 | Citigroup | n/a | Buy |
| 2019-8-22 | Morgan Stanley | n/a | Overweight |
| 2019-8-21 | Wells Fargo & Co | n/a | Outperform |
| 2019-8-21 | Wedbush | n/a | Neutral |
| 2019-8-21 | UBS Group | n/a | Buy |
| 2019-8-21 | SunTrust Banks | n/a | Hold |
| 2019-8-21 | Robert W. Baird | n/a | Outperform |
| 2019-8-21 | Loop Capital | n/a | Hold |
| 2019-8-21 | Citigroup | n/a | Buy |
| 2019-8-20 | Credit Suisse Group | n/a | Neutral |
| 2019-8-14 | Wells Fargo & Co | n/a | Outperform |
| 2019-8-12 | Stifel Nicolaus | n/a | Buy |
| 2019-7-19 | Loop Capital | n/a | Hold |
Home Depot stock analysis
Daily outlook
After topping to all time highs on September/12, Home Depot slightly fell -1.51% to $224.67.
Atlanta headquarted company slightly fell -1.51% yesterday to $224.67 after marking all time highs on Sep/12. HD shows a short term strength with several rising tops and rising bottoms. In the very short term, on Tuesday it marked a new bottom at $226.47 that should act a support if the home improvement supplier starts a trading flat base in the range of $226.47 - $235.49 If Atlanta headquarted company breakouts over $235.49 with average or higher volume, this would be a signal that the uptrend resumes. Since last May when SMA100d and SMA200d crossed up, HD price gained $34.79 per share (18.32%). On Aug/16 HD price bounced up over the SMA of 100 days demonstrating to be a significant support for this stock. On September/12, HD hit new all time highs, pushing higher previous ATH of $233.87 recorded on September/9. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
Weekly outlook
After climbing for 4 weeks, this week Home Depot slipped a godawful -3.98%, closing at $224.67. By mid August HD climbed an extraordinary 6.36% in just one week.
Atlanta headquarted company stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Not so far away is the last price record the home improvement supplier marked last week. Since early May when SMA20w and SMA40w crossed up, HD price gained $26.72 per share (13.50%). By mid March HD price bounced up over the SMA of 40 weeks that acted as support stopping new slides.
Home Depot stock price history
Home Depot stock went public on September 22nd, 1981 with a price of $0.021. Since then, HD stock grew a 1,123,250.00%, with a yearly average of 30,358.10%. If you had invested $1,000 in Home Depot stock in 1981, it would worth $11,232,500.00 today.
1: Adjusted price after possible price splits or reverse-splits.
Home Depot stock historical price chart
HD stock reached all-time highs on September/12 with a price of $235.49.
Home Depot stock price target is $225.40
How much a stock will be priced tomorrow or next week is quite unpredictable However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we found 13 price predictions for Home Depot stock:| Date | Analyst / Broker | Action | Previous target | Current target | Diff |
| 2019-9-13 | Citigroup | Raises Target | $246.00 | $269.00 | 9.3% |
| 2019-8-22 | Morgan Stanley | Raises Target | $210.00 | $225.00 | 7.1% |
| 2019-8-21 | Wells Fargo & Co | Reiterates | $230.00 | $235.00 | 2.2% |
| 2019-8-21 | Wedbush | Reiterates | $190.00 | $230.00 | 21.1% |
| 2019-8-21 | UBS Group | Raises Target | $215.00 | $240.00 | 11.6% |
| 2019-8-21 | SunTrust Banks | Reiterates | n/a | $208.00 | - |
| 2019-8-21 | Robert W. Baird | Raises Target | $220.00 | $230.00 | 4.5% |
| 2019-8-21 | Loop Capital | Raises Target | n/a | $200.00 | - |
| 2019-8-21 | Citigroup | Raises Target | $218.00 | $246.00 | 12.8% |
| 2019-8-20 | Credit Suisse Group | Set Price Target | n/a | $192.00 | - |
| 2019-8-14 | Wells Fargo & Co | Reiterates | $215.00 | $230.00 | 7% |
| 2019-8-12 | Stifel Nicolaus | Raises Target | n/a | $230.00 | - |
| 2019-7-19 | Loop Capital | Raises Target | n/a | $195.00 | - |
| (in average) | $218.00 | $225.40 | 3.0% |
Financials and fundamental analysis
Earnings date and Earnings per Share
On February, Home Depot presented its financial report, posting a tiny climb for the Earnings per Share (EPS) ratio. Analyst expected $2.16 per share, but Home Depot posted $2.25.| Quarter | Reporting date | Estimated EPS | Actual EPS | Surprise |
|---|---|---|---|---|
| 2017-Q2 | - | n/a | 1.67 | n/a |
| 2017-Q3 | - | n/a | 2.25 | n/a |
| 2017-Q4 | 2017-11-14 | 1.82 | 1.84 | 1.1% |
| 2018-Q1 | 2018-02-20 | 1.62 | 1.69 | 4.3% |
| 2018-Q2 | 2018-05-15 | 2.06 | 2.08 | 1.0% |
| 2018-Q3 | 2018-08-14 | 2.84 | 3.05 | 7.4% |
| 2018-Q4 | 2018-11-13 | 2.27 | 2.51 | 10.6% |
| 2019-Q1 | 2019-02-26 | 2.16 | 2.25 | 4.2% |
| 2019-Q2 | - | n/a | n/a | n/a |
| 2019-Q3 | - | n/a | n/a | n/a |
Annual financial results
In 2019, Home Depot annual turnover rose a very good 7.23% to $108,203.00 million dollars from $100,904.00 marked in 2018. When comparing 2019 vs 2018, in the same way, profit margin (that is, the net income divided by revenues) grew a 1.73% to 10.28%.| Year | Sales | YoY | Income/(margin) | YoY |
|---|---|---|---|---|
| 2014 | $78,810 M | - | $5,390 M6.8% | - |
| 2014 | $83,180 M | 5.54% | $6,350 M7.6% | 17.81% |
| 2015 | $83,176 M | 0.00% | $6,345 M7.6% | -0.08% |
| 2015 | $88,520 M | 6.42% | $7,010 M7.9% | 10.48% |
| 2016 | $88,519 M | 0.00% | $7,009 M7.9% | -0.01% |
| 2016 | $94,600 M | 6.87% | $7,960 M8.4% | 13.57% |
| 2017 | $94,595 M | -0.01% | $7,957 M8.4% | -0.04% |
| 2017 | $100,900 M | 6.67% | $8,630 M8.6% | 8.46% |
| 2018 | $100,904 M | 0.00% | $8,630 M8.6% | 0.00% |
| 2019 | $108,203 M | 7.23% | $11,121 M10.3% | 28.86% |
Quarterly financial results
Home Depot reported $26,491.00 M in revenues for 2019-Q1, a 0.72% improvement compared to previous quarter. Reported quarter earnings marked $2,344.00 M with a profit margin of 8.85%. Profit margin decreased a -2.05% compared to previous quarter when profit margin was 10.90%. When comparing turnover to same quarter last year, Home Depot sales marked an impressive growth and boosted a 10.92%.| Quarter | Sales1 | QoQ2 | Income1/(margin) | QoQ2 |
|---|---|---|---|---|
| 2017-Q2 | $23,890 M | - | $2,010 M8.4% | - |
| 2017-Q3 | $28,110 M | 17.66% | $2,670 M9.5% | 32.84% |
| 2017-Q4 | $25,026 M | -10.97% | $2,165 M8.7% | -18.91% |
| 2018-Q1 | $23,883 M | -4.57% | $1,779 M7.4% | -17.83% |
| 2018-Q2 | $24,947 M | 4.46% | $2,404 M9.6% | 35.13% |
| 2018-Q3 | $30,463 M | 22.11% | $3,506 M11.5% | 45.84% |
| 2018-Q4 | $26,302 M | -13.66% | $2,867 M10.9% | -18.23% |
| 2019-Q1 | $26,491 M | 0.72% | $2,344 M8.8% | -18.24% |
Home Depot ownership
When you are planning to invest in a company, it's worth to review its ownership structure.Home Depot shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.11% of all shares.
In case of Home Depot stock, 72.23% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for HD stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to Home Depot:
| HD | BLDR | LL | LOW | SHOS | |
|---|---|---|---|---|---|
| Market cap | $247.1 B | $2.3 B | $265.2 M | $86.1 B | $85.1 M |
| Total shares | 1,100.0 M | 115.5 M | 28.7 M | 776.0 M | 22.7 M |
| Float shares | 1,090.0 M | 113.7 M | 26.3 M | 769.9 M | 7.9 M |
| - Institutional holdings (%) | 72.2% | 93.6% | 0.0% | 77.2% | 45.6% |
| - Insider holdings (%) | 0.1% | 2.1% | 10.5% | 0.2% | 38.6% |
| Shares in short selling | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
Home Depot summary
| Friday, September 20th, 2019 | |
|---|---|
| Open | $227.99 |
| Close | $224.67 |
| Day range | $224.23 - $230.05 |
| Previous close | $228.12 |
| Session gain | -1.51% |
| Average true range | $3.64 |
| 50d mov avg | $217.54 |
| 100d mov avg | $207.89 |
| 200d mov avg | $194.82 |
| Daily pattern | lb03a |
| Weekly pattern | lt06a |
Home Depot performance
To measure stock performance is always good to benchmark with competitors or related stocks. For Home Depot, the benchmark is made against Builders FirstSource, Lumber Liquidators, Lowe's Companies and Sears Hometown and Outlet Stores.| Stock | 3m | 6m | 12m |
|---|---|---|---|
| HDHome Depot | 7.95% | 20.60% | 8.62% |
| BLDRBuilders FirstSou... | 32.85% | 61.43% | 29.21% |
| LLLumber Liquidator... | -17.35% | -11.15% | -47.91% |
| LOWLowe's Compan... | 10.63% | 6.74% | -3.16% |
| SHOSSears Hometown an... | 46.48% | 85.64% | 11.94% |
Home Depot competitors
We chose a few stocks to conform a list of Home Depot competitors to examine if you are interested in investing in HD:- Builders FirstSource (BLDR)
- Lumber Liquidators (LL)
- Lowe's Companies (LOW)
- Sears Hometown and Outlet Stores (SHOS)
Latest Home Depot stock news
- InvestorPlaceWhy Home Depot Stock Isn’t Worth BuyingJuly 23, 2019
- InvestorPlaceFalling Rates = Rising Home DepotJuly 1, 2019
- Seeking AlphaHome Depot: Significant Value RemainsJune 28, 2019
- Seeking AlphaNear All-Time Highs, Home Depot Is Still A BuyJune 27, 2019
- Seeking AlphaNearly Impossible To Bet Against Home DepotJune 17, 2019