Home Depot stock: buy or sell
Updated on:
Apr 22nd, 2021
2
Home Depot stock brief
- Home Depot slightly moved a 0.61% after hitting new all-time highs last Monday
- UBS Group published a strong bullish rating for Home Depot on Tuesday, with a forecast of $350.00
- The Home Depot, Inc. operates as a home improvement retailer.
Should I buy Home Depot stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $HD stock a buy?
In the current situation of Home Depot there is not any eligible buy setup. This doesn't mean $HD will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell Home Depot stock?
Knowing when to sell a stock is even more difficult than knowing when to buy it. Like when we have to buy shares, determining when is appropiate to sell is not a whimsy decision, and we must follow our own trading style. Our trading system selects very simple strategies to guide us on when is a good time to sell our shares. Be aware that these strategies are not intended for selling short Home Depot stock
As a golden rule, you must never hold a trading operation that leads to greater losses than those expected by the time of the buy. The timing to sell your stock should always be dictated by the stop-loss (automatic or manual)
Is it time to sell Home Depot stock?
Currently, Home Depot stock doesn't match any of our preferred sell setups, so if you hold Home Depot shares and your operation is in profit probably is not time to sell now
Home Depot ratings
In the last 30 days, 8 analyst ratings were published for Home Depot. General sentiment is bullish, with 7 out of 8 posting optimistic forecasts
| Brokerage firm | Rating |
|---|---|
| Mar 25th, 2021 | |
| Credit Suisse Group | |
| Mar 29th, 2021 | |
| Wells Fargo & Company | Buy |
| Apr 12th, 2021 | |
| Loop Capital | |
| Apr 14th, 2021 | |
| UBS Group | |
| Apr 15th, 2021 | |
| Zelman & Associates | |
| Apr 19th, 2021 | |
| JPMorgan Chase & Co. | Buy |
| Loop Capital | |
| Apr 20th, 2021 | |
| UBS Group | |
Home Depot stock analysis
In mid-March, the price broke out above the previous top at $282.91 on the downtrend started last January. Since then, the price action resulted in a 15.21% profit.
$HD at new Highs
Last Monday, Home Depot marked all-time highs (ATH) again at $328.83. Stock rallied fast in the last 10 sessions, smashing new all-time highs 5 times
SMAs overview
Supports and resistances
Price is at highs and there are not upper resistance levels.
The current support levels are:
Bollinger bands
The price is moving very close to the upper Bollinger band, indicating some level of overbought in recent sessions. This is not a sell signal, as price can trade in these levels for many days and weeks
Relative strength index
Broke through the 70 level Wednesday, with a reading of 75.47. Contrary to what many investors may think, the fact that the value is in the overbought zone does not in any way imply a sell signal, as shares can climb during several weeks being above 70
Home Depot stock price history
Home Depot started trading on Sep 22nd, 1981 at $0.02 per share1. Since then, HD stock has risen by 1,629,650.00%, with an average of 41,785.90% per year. An investment of $1,000USD at that time would be valued $16,297,500.00 nowadays.
1: Adjusted price after possible price splits or reverse-splits
Price target for Home Depot stock
Nobody knows how much a share will be priced tomorrow. Banks and financial organisations post their analysis forecasting how a stock will performance in the future.
The following table shows the price forecasts released by analysts over the last 30 days. If you are a small investor you should not buy or sell based on these forecasts.
Averaging all price targets exposed below, the forecasted price for Home Depot stock is $339.86. That is a 4.27% than the current price ($325.95).
| Brokerage firm | Price target |
|---|---|
| Mar 25th, 2021 | |
| Credit Suisse Group | $319.00 |
| Mar 29th, 2021 | |
| Wells Fargo & Company | $310.00 → $330.00 |
| Apr 12th, 2021 | |
| Loop Capital | $310.00 → $350.00 |
| Apr 14th, 2021 | |
| UBS Group | $305.00 → $350.00 |
| Apr 15th, 2021 | |
| Zelman & Associates | Not available |
| Apr 19th, 2021 | |
| JPMorgan Chase & Co. | $285.00 → $330.00 |
| Loop Capital | $310.00 → $350.00 |
| Apr 20th, 2021 | |
| UBS Group | $305.00 → $350.00 |
Earnings and financials
Last February, The Home Depot, Inc. ($HD) reported adjusted EPS for that slightly beat Market expectations. Quarterly EPS was $2.74 per share instead of $2.62. This Q4 report represents an earnings surprise of 4.58%. Company's revenue resulted of $32.3 billion versus $30.7 billion estimated by analysts.
Compared to the same quarter one year ago, EPS was $2.28, so reported EPS is a gain of 20.18%. Turnover exploded a 25.13% on an annualized basis in the , from $257.8B to $322.6B last quarter.Home Depot ($HD) is presenting quarterly financial report mid next May. Forecasted for this quarter is $2.96, compared to $2.74 that was reported for Q4.
Home Depot performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Home Depot ($HD) | 12.50% | 18.70% | 15.70% |
Disclaimer:
The thoughts contained in this article are personal and should not be followed as recommendations for you to buy or sell shares. The author of this document does not know the particular positions of the reader, his or her own financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are provided for informational motives onlyHome Depot summary
| Wednesday, April 21st, 2021 | |
|---|---|
| Open | $324.96 |
| Close | $325.95 |
| Day range | $323.89 - $327.91 |
| Previous close | $323.96 |
| Session gain | 0.61% |
| Average true range | $5.97 |
| 50d mov avg | $287.18 |
| 100d mov avg | $278.36 |
| 200d mov avg | $274.58 |
| Earnings date | May 18th, 2021 |