Home Depot stock: buy or sell
Updated on:
Jan 25th, 2021
2
Home Depot stock brief
- Home Depot stock went up 1.77% to close at $284.00 on the stock market today, after 3 consecutive sessions in positive.
- The price is currently higher than the upper Bollinger band, which usually indicates a short-term correction
- Last Thursday broke out above its latest top at $275.74
- The Home Depot, Inc. operates as a home improvement retailer.
Should I buy Home Depot stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. 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?
Currently, Home Depot stock matches one trading strategy:
ATH buy setup
All-time Highs is always an excellent buy point for those who like to buy high and sell higher. The good point of buying at all-time highs is that shares price doesn't struggle with upper resistances, and usually it rises fast. However, you must always be aware of a possible bulls trap that may trigger your buy order and then falls sharply. That's why a stop loss is so important. Home Depot can break to all-time highs any time soon, as it only needs to rise a 2.49%. Setup your buy order at $291.06 if you want to trade with this strategy. The stop loss would be placed at $261.95
| Buy setup | Buy point | Stop loss | Risk |
| ATH buy setup | $291.06 | $261.95 | 10.00% |
Should I sell Home Depot stock?
Knowing when to sell a stock is even more difficult than knowing when to buy it. Trading strategies allow us to avoid impetuous decisions based on our moods or the buzz that surrounds the market. 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 should not be used for shorting Home Depot stock
A guiding principle is that you should never hold an operation that yields higher than expected losses by the time of the buy. The moment to sell your stock always has to be dictated by the stop-loss (automatic or manual)
Is it time to sell Home Depot stock?
In the current situation of Home Depot there is not any eligible sell setup, so Home Depot stock holders with operations in profit can keep their positions
Home Depot ratings
In the last month, just one rating was published for Home Depot
| Brokerage firm | Rating |
|---|---|
| Jan 13th, 2021 | |
| Guggenheim | Neutral → |
Home Depot stock analysis
SMAs overview
Supports and resistances
The current resistance levels are:
The current support levels are:
Bollinger bands
Price readings above or below the Bollinger Bands signal that the price has has trended strongly to extreme upward or downward values. In this case, the price is beyond the upper band, meaning a near-term corrective movement (at least) until it is under the band
Relative strength index
The has been between the overbought and oversold zones for many weeks, and therefore, without this indicator really being of any help to us in making any decisions.
Home Depot stock price history
Home Depot started trading priced at an adjusted price1 of $0.02 on Sep 1981. Since then, HD stock has risen by 1,419,900.00%, with an average of 36,407.69% per year. If you had invested thousand dollars in Home Depot stock at that time, it would have a value of $14,200,000.00 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Home Depot stock
How much a stock will be priced tomorrow or next week is quite unpredictable. Banks and financial organisations issue their analysis forecasting how a stock will performance in the future.
The following table shows the price target posted by analysts in the last 30 days. Again, these estimates are not direct recommendations for small traders and must not be trusted blindly.
There is just one price target issued for Home Depot that predicts a price of $310.00.
| Brokerage firm | Price target |
|---|---|
| Jan 13th, 2021 | |
| Guggenheim | $310.00 |
Earnings and financials
Home Depot ($HD) hosted the financial event and posted the report last November. Home Depot surpassed analysts estimates and reported of $3.18, that is a 4.26% surprise compared to the initial forecasts of $3.05. On the same basis, reported revenues were $33.5 billion compared to estimates of $32.0 billion.
This compares to Earnings of $2.53 per share a year ago, so posted EPS is an improvement of 25.69%. Looking at sales, figures exploded a 23.19% compared to $272.2B same quarter a year ago.Home Depot ($HD) is hosting the quarterly earnings call late next February. Market estimates of $2.55, compared to previous quarter that made $3.18.
Home Depot performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Home Depot ($HD) | 5.20% | 0.60% | 8.30% |
Disclaimer:
The thoughts contained in this article are personal and not recommendations for you to buy or sell shares. The author of this paper does not know the individual positions of the reader, his or her finances 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 Viewpoints are posted for learning motives onlyHome Depot summary
| Friday, January 22nd, 2021 | |
|---|---|
| Open | $279.26 |
| Close | $284 |
| Day range | $277.87 - $285.08 |
| Previous close | $279.05 |
| Session gain | 1.77% |
| Average true range | $6.86 |
| 50d mov avg | $270.18 |
| 100d mov avg | $273.60 |
| 200d mov avg | $258.98 |
| Earnings date | February 23rd, 2021 |