Home Depot stock: buy or sell?

HD stock price: $224.67 -1.51% At close on September 20th, 2019

Updated on:
September 20th, 2019

5

After reaching all time highs on September 12th, Home Depot slightly fell -1.51% to $224.67.

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 setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
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.

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.
Is HD a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-19DZ BankHoldSell
2019-9-17GuggenheimBuyNeutral
2019-9-13Citigroupn/aBuy
2019-8-22Morgan Stanleyn/aOverweight
2019-8-21Wells Fargo & Con/aOutperform
2019-8-21Wedbushn/aNeutral
2019-8-21UBS Groupn/aBuy
2019-8-21SunTrust Banksn/aHold
2019-8-21Robert W. Bairdn/aOutperform
2019-8-21Loop Capitaln/aHold
2019-8-21Citigroupn/aBuy
2019-8-20Credit Suisse Groupn/aNeutral
2019-8-14Wells Fargo & Con/aOutperform
2019-8-12Stifel Nicolausn/aBuy
2019-7-19Loop Capitaln/aHold

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.

HD stock chart (daily)

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.

HD stock chart (weekly)

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:
HD stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-13CitigroupRaises Target$246.00$269.009.3%
2019-8-22Morgan StanleyRaises Target$210.00$225.007.1%
2019-8-21Wells Fargo & CoReiterates$230.00$235.002.2%
2019-8-21WedbushReiterates$190.00$230.0021.1%
2019-8-21UBS GroupRaises Target$215.00$240.0011.6%
2019-8-21SunTrust BanksReiteratesn/a$208.00-
2019-8-21Robert W. BairdRaises Target$220.00$230.004.5%
2019-8-21Loop CapitalRaises Targetn/a$200.00-
2019-8-21CitigroupRaises Target$218.00$246.0012.8%
2019-8-20Credit Suisse GroupSet Price Targetn/a$192.00-
2019-8-14Wells Fargo & CoReiterates$215.00$230.007%
2019-8-12Stifel NicolausRaises Targetn/a$230.00-
2019-7-19Loop CapitalRaises Targetn/a$195.00-
(in average)$218.00$225.403.0%
The price prediction for Home Depot stock is $225.40, moving in a range between $269.00 and $192.00. In average, analysts' outlook on HD price target is positive, improving the prediction by a 3.00% from previous estimations.

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.
HD earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a1.67n/a
2017-Q3-n/a2.25n/a
2017-Q42017-11-141.821.841.1%
2018-Q12018-02-201.621.694.3%
2018-Q22018-05-152.062.081.0%
2018-Q32018-08-142.843.057.4%
2018-Q42018-11-132.272.5110.6%
2019-Q12019-02-262.162.254.2%
2019-Q2-n/an/an/a
2019-Q3-n/an/an/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%.

HD annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2014$78,810 M-$5,390 M6.8%-
2014$83,180 M5.54%$6,350 M7.6%17.81%
2015$83,176 M0.00%$6,345 M7.6%-0.08%
2015$88,520 M6.42%$7,010 M7.9%10.48%
2016$88,519 M0.00%$7,009 M7.9%-0.01%
2016$94,600 M6.87%$7,960 M8.4%13.57%
2017$94,595 M-0.01%$7,957 M8.4%-0.04%
2017$100,900 M6.67%$8,630 M8.6%8.46%
2018$100,904 M0.00%$8,630 M8.6%0.00%
2019$108,203 M7.23%$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%.
HD quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$23,890 M-$2,010 M8.4%-
2017-Q3$28,110 M17.66%$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 M4.46%$2,404 M9.6%35.13%
2018-Q3$30,463 M22.11%$3,506 M11.5%45.84%
2018-Q4$26,302 M-13.66%$2,867 M10.9%-18.23%
2019-Q1$26,491 M0.72%$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:

HDBLDRLLLOWSHOS
Market cap$247.1 B$2.3 B$265.2 M$86.1 B$85.1 M
Total shares1,100.0 M115.5 M28.7 M776.0 M22.7 M
Float shares1,090.0 M113.7 M26.3 M769.9 M7.9 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 selling0.0%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 patternlb03a
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.
Stock3m6m12m
HDHome Depot7.95%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:

Latest Home Depot stock news