Home Depot stock: buy or sell?
Updated on:
February 14th, 2020
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?
You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. That's why is so important to define your own trading strategy that matches with your character as inversor. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.These 2 buy setups are elegible for Home Depot stock now:
| Buy setup | Elegible |
|---|---|
| New all-time high | Yes |
| New 52 week high | Yes |
| 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 published by financial analysts to indicate a particular stock's attractiveness.
Unfortunately, we couldn't detect any rating for HD stock for the last month.Home Depot stock analysis
Daily outlook
After marking all time highs on Feb 14th, Home Depot inched 1.10% to $245.03.
Atlanta headquarted company inched 1.10% on Feb/14 to $245.03 after reaching all time highs on February 14th. Since price and SMA100d lines crossed up on January 16th, HD climbed $20.44 (9.10%). On February/14, HD hit a new all time high, pushing higher than on Thursday tops. Check different trading setups that use ATHs as triggers.
Weekly outlook
The home improvement supplier soared 3.26% this week and reached a new all time high at $245.20.
Weekly chart tells us that price finally broke over the resistance at $222.00 and continued climbing. Since early May 2019 when SMA20w and SMA40w crossed up, HD price gained $48.33 per share (24.57%). By mid March 2019 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 1,225,050.00%, with an average of 32,238.20% per year. If you had invested right after HD's IPO a $1,000 in Home Depot stock in 1981, it would worth $12,250,500.00 today.
1: Adjusted price after possible price splits or reverse-splits.
Home Depot stock historical price chart
HD stock reached all-time highs on Feb/14 with a price of $245.20.
Home Depot stock price target
How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. 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 30 days we have not found any price target for Home Depot stock by any trusted analyst.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
Compared to 2018, last anual revenues report draw a remarkable growth of 7.23% to $108,203.00 M USD. In line, its earnings margin (compared to sales) gained to 10.28%, that is $11,121.00 million.| 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 posted $26,491.00 million in sales for 2019-Q1, a 0.72% up compared to previous quarter. Reported quarter income 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 a brilliant increase and skyrocketed 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 stock, it's always worth to overview its ownership structure.Home Depot shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.10% of all shares.
In case of Home Depot stock, 72.39% 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 | |
|---|---|
| Market cap | $267.1 B |
| Total shares | 1,090.0 M |
| Float shares | 1,090.0 M |
| - Institutional holdings (%) | 72.4% |
| - Insider holdings (%) | 0.1% |
| Shares in short selling | 0.0% |
Home Depot summary
| Friday, February 14th, 2020 | |
|---|---|
| Open | $243.44 |
| Close | $245.03 |
| Day range | $242.63 - $245.20 |
| Previous close | $242.36 |
| Session gain | 1.10% |
| Average true range | $3.50 |
| 50d mov avg | $225.68 |
| 100d mov avg | $227.29 |
| 200d mov avg | $217.08 |
| Daily pattern | |
| Weekly pattern | lb01c |
Home Depot performance
Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We selected as the bechmarking frame for Home Depot stock.| Stock | 3m | 6m | 12m |
|---|---|---|---|
| HDHome Depot | 3.92% | 21.83% | 30.83% |
Home Depot competitors
Unfortunately, we could not find any public company that could be defined as Home Depot competitor. This doesn't mean Home Depot does not have any competitor in the market, it's just we could not detected it.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