Home Depot's most recent trend suggests a bullish bias. One trading opportunity on Home Depot is a Bull Put Spread using a strike $200.00 short put and a strike $190.00 long put offers a potential 10.5% return on risk over the next 23 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $200.00 by expiration. The full premium credit of $0.95 would be kept by the premium seller. The risk of $9.05 would be incurred if the stock dropped below the $190.00 long put strike price.
The 5-day moving average is moving up which suggests that the short-term momentum for Home Depot is bullish and the probability of a rise in share price is higher if the stock starts trending.
The 20-day moving average is moving up which suggests that the medium-term momentum for Home Depot is bullish.
The RSI indicator is at 68.76 level which suggests that the stock is neither overbought nor oversold at this time.
To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here
LATEST NEWS for Home Depot
GM Thomas Dimitroff has target in mind for Falcons first-round pick (Video)
Mon, 22 Apr 2019 15:41:02 +0000
Atlanta Falcons fans must wait until Thursday's NFL Draft to find out the team's next big addition. The Falcons hold nine picks in the 2019 draft, including No. 14 in the first round, which broadcasts live on April 25. Dimitroff had an epiphany of sorts about the pick in the middle of an early morning workout last week, according to a video on the team's website.
Is The Home Depot, Inc. (NYSE:HD) Potentially Undervalued?
Sun, 21 Apr 2019 14:10:17 +0000
Today we're going to take a look at the well-established The Home Depot, Inc. (NYSE:HD). The company's stock saw a double-digit share price rise of over 10% in the past couple of months on the NYSE…
Edited Transcript of HD earnings conference call or presentation 26-Feb-19 2:00pm GMT
Thu, 18 Apr 2019 20:13:18 +0000
Q4 2018 Home Depot Inc Earnings Call
Vivint Solar Stock Is Cheap, But It Carries Real Risks
Thu, 18 Apr 2019 15:48:27 +0000
For Vivint Solar (NASDAQ:VSLR), the bull case seems easy to make. VSLR stock isn't cheap on an earnings basis, but it's not supposed to be, at least not yet.Vivint Solar's residential installations will take time to bear fruit. However, management's estimate of future profits suggests that VSLR stock can rise meaningfully from its current share price of $5.45. Meanwhile, solar demand is only likely to rise going forward, suggesting VSLR should have substantive upside potential.InvestorPlace – Stock Market News, Stock Advice & Trading TipsBut the bear case on Vivint Solar stock seems reasonably easy to make as well. Historically, the solar industry has been a black hole for investors. Plus, the company's costs are rising, and profitability appears a long way off. * 8 Best Stocks to Buy for an April Rally VSLR stock doesn't look like it's worth the risk. But investors more optimistic on solar might see things differently. Reasons to Buy VSLR StockThere are several reasons to strongly consider Vivint Solar stock. Near-term earnings don't look all that impressive: adjusted net loss per share in 2018 was $2.38, notably worse than 2017's $1.58. But those figures include huge losses attributable to non-controlling interests i.e., the funds investing in Vivint Solar's investment credits.After backing out those losses, VSLR is close to profitable. And analysts, on average, are expecting the company to become profitable within the next two years.But the long-term nature of Vivint Solar's contracts means the company is trading near-term profits (and cash flow) for out-year benefits. The company's measure of "net retained value per share" estimates the total value of existing assets, less debt. That figure continues to rise, climbing from $6.61 at the end of 2016 to a current $9.20.Investors should be somewhat skeptical about that figure. Companies generally will have a more positive view toward their own futures, after all. But even a discount from the $9-plus figure still suggests that VSLR stock is reasonably priced, if not cheap, around $5. Meanwhile, the net-retained-value figure should grow over time as solar demand continues, spurred in part by regulations in California and elsewhere.While VSLR's demand should rise, competition may not do the same. Vivint Solar remains behind Sunrun (NASDAQ:RUN) in terms of total installations. But it does seem like Tesla (NASDAQ:TSLA) unit SolarCity is fading as a competitor. Per Tesla's 10-K filings, SolarCity deployed 523 megawatts of solar energy generation in 2017, and just 326 MW last year. In contrast, Vivint's installations rose, showing notable strength in the second half of the year. The Case for VSLRThere's a lot to like about VSLR stock. The industry is growing. Market share gains could be on the way. SolarCity is scuffling, and Vivint has partnered with Home Depot (NYSE:HD), after Tesla walked away from its deal with the home-improvement retailer last year.VSLR's earnings should improve in the near-term. Debt might be a concern, with the long-term total at $1.2 billion. But Vivint has proven able to refinance by securitizing existing installations. This includes the largest ever such deal, which closed in June.So Vivint should be able to grow its business. It should be able to finance that business. The numbers can be confusing, owing to the different financing deals. Plus, there's the fact that 20-year leases may not be profitable for some time to come. Still, the numbers seem to work and, if solar growth accelerates, so too should Vivint Solar stock. The Risks Facing VSLR StockAt the same time, Vivint Solar stock seems like anything but a slam dunk. The solar sector has been around for a century. Despite this, the number of solar companies that have made consistent profits for investors seems close to zero. VSLR itself trades well below its highs from earlier this decade. It originally planned to sell itself to SunEdison, but canceled the deal; SunEdison headed into bankruptcy not long after.RUN did hit an all-time high earlier this year. Solar cell manufacturer First Solar (NASDAQ:FSLR) traded sideways in recent years. But overall, this has been a difficult sector, with tariffs and subsidies leading to pricing volatility. This dynamic created problems for manufacturers and installers alike.In that context, there's an obvious question as to whether Vivint Solar's model is just too tough. Its business is, and will remain, labor-intensive. Financing depends on investors' willingness to buy into securitizations at low interest rates.Interest rates have stayed low this decade, but they may not do so forever. Change the discount rate on future cash flows that VSLR uses to calculate net retained value per share from 6% to 8%. When you do that, the net retained value per share of VSLR stock drops to $6. That's a much lower margin of safety and suggests smaller potential gains from these shares.Low natural gas prices are an issue, as they affect energy rates and could potentially impact the pricing advantage of installed solar. Tesla's solar roof may not materialize any time soon, but other companies are looking to build similar models. Naturally, this could undercut the need for Vivint Solar's systems. Battery storage is another key potential growth catalyst for VSLR stock, but Vivint's partnership with Mercedes-Benz has fallen through, leaving the company potentially behind on that front. $5 Is Cheap, But VSLR's Road May Be Too ToughSince plunging after the SunEdison deal fell through, VSLR stock actually has been a reasonably good investment. It's possible that industry strength and continued retained-value growth will keep that trend intact.But there are an awful lot of obstacles in the company's path as well. VSLR can move quickly in either direction, based on external worries. New tariffs from China could spike the cost of solar panels, making the business model unprofitable, or close to it. Regulations can change. Subsidies can be added or withdrawn. There are myriad factors beyond Vivint Solar's control which can affect Vivint Solar stock.Investors who believe in solar and are willing to take on the risks of VSLR very well might see rewards. But the industry's track record and installation-space uncertainty make me believe that VSLR's road is a little too tough. At the end of the day, this is a low-margin and capital-intensive business. That's a difficult way to make money in any industry.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best ETFs for 2019: A Close Race at the Front * 15 Stocks to Buy Leading the Financial Charge * 7 Stocks From Around the World That Beat U.S. Stocks Compare Brokers The post Vivint Solar Stock Is Cheap, But It Carries Real Risks appeared first on InvestorPlace.
5 Dividend Stocks Perfect for Retirees
Wed, 17 Apr 2019 19:14:50 +0000
For those investors in retirement, it all comes down to income. How can you convert your lifetime of savings into a steady stream of paychecks? There's plenty of ways to do that. But one of the best continues to dividend stocks. After all, dividend stocks generally offer higher yields than bonds and give you the ability to see your income rise through increasing dividend payouts as well as grow thanks to capital appreciation. Bonds, CDs, and other traditional fixed income products can't do that.The only problem is, not all dividend stocks are worthy for retirees.Those investors in retirement can't afford to see their payouts get cut or see their capital go up in flames. There's simply not enough time to recoup losses or balance out volatility. To this end, it takes a certain variety of dividend stocks to get you through your golden years. A focus on quality is key.InvestorPlace – Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Buy for Spring Season Growth Which dividend stocks make the grade for retirement? Here are five dividends stocks that are perfect for retirement portfolios. Snap-on (SNA)Source: Snap-On via Wikimedia (Modified)Dividend Yield: 2.43%Selling screwdrivers, wrenches and other hand tools may not seem that exciting, but this niche has helped make Snap-On Incorporated (NYSE:SNA) one of the best dividend stocks around.SNA manufactures a variety of tools, equipment, and repair information systems for various industrial markets. Many professional mechanics and assembly workers swear by Snap-on's better-made products. And with a simple socket wrench set costing north of $300, SNA isn't exactly going after DIY and weekend warriors here. You need high-performance when you're fixing a bullet train or repairing a wind turbine.This focus on the industrial market has widely insulated SNA from the whims of the consumer market. Because of this, SNA has paid dividends without interruptions or reductions since 1939. Its last increase was a strong 15.85% jump.Part of that jump comes from the reduction in corporate taxes. The other continues to be Snap-On's moves into higher-margined tech products. Modern machinery is chock-full of computers and sensors. SNA is quickly becoming the standard provider for computer-based diagnostics equipment. This has provided a supercharger to its earnings in recent years. EPS surged 12.6% year-over-year in 2018.All in all, Snap-On's continued leadership position in its niche market continues to pay benefits. That makes it one of the best dividend stocks for retirees. Becton Dickinson and Co (BDX)Source: Shutterstock Dividend Yield: 1.25%Admittingly, the headline yield on Becton Dickinson and Co (NYSE:BDX) isn't much to write home about. BDX's current yield of 1.25% is about what you can earn from a savings account these days. However, the story at the medical device maker is one of payout growth. This why retirees should include BDX in their portfolio of dividend stocks.BDX is one of the world's largest producers of needles, syringes, and other sharps-related devices. This catalog of products spans everything from "basics" like insulin needles and catheters to more advanced regional anesthesia and drug delivery products. The beauty is that the bulk of these items are designed to be single use. That means your doctor and hospital has to come back every month to get more of them. Becton's integration of rival Bard has only expanded on this catalog as well.This, plus moves into life science products and more high-tech drug delivery medical devices, has continued to make BDX a cash flow machine. The firm has used that cash flow to reward shareholders by paying down the debt used to buy Bard as well as increase its dividend and conduct buybacks. Over the last decade, Becton has managed to double its dividend based on its strong cash flows. Given its strengths, there's a good chance that BDX will keep that streak going. * 5 Wonderful REITs to Buy Today For retirees, BDX stock offers a chance to grow their income over the long haul. Home Depot Inc. (HD)Source: Shutterstock Dividend Yield: 2.66%It's no secret that retail has been a blood bath. Online shopping has continued to hit many traditional brick and mortar retailers hard. Empty storefronts and dead shopping malls are quickly becoming the norm. But just don't tell that to Home Depot (NYSE:HD). The home improvement retailer is killing it and has proved that its a top dividend stock. Retirees should take notice.Much of HD's recent success comes from its moves into omnichannel retailing. Consumers these days what to buy products when and how they what them. They want them in-store, online, via mobile apps, etc. Home Depot seems to have cracked the code. Spending on technology and beefing-up its operations have worked and customers keep hitting up HD for their home improvement needs. Sales grew nearly 11% last quarter to reach a whopping $26.5 billion based on its omnichannel moves.HD has clearly gotten the message about the changing face of retail.Keeping that going into the future and helping pad its dividend is that HD has also figured out how to attract Millennial and younger customers. Thanks to new classes, videos, and DIY help, Home Depot has continued to attract the customers of tomorrow. That's a demographic that many other retailers are struggling to court.With its strong growth, HD recently was able to increase its dividend by 32% and conduct more than $15 billion in buybacks. Microsoft Corporation (MSFT)Source: Shutterstock Dividend Yield: 1.25%Microsoft (NASDAQ:MSFT) is proving that old school tech can still be a fertile ground for finding dividend stocks — especially those for retirees. The key has been CEO's Satya Nadella vision to transform Mr. Softy into a software as a service (SaaS) company and reap plenty of reoccurring/subscription revenues.Today, the cloud rules the roost at MSFT. Microsoft's Azure and Dynamics 365 platforms are quickly becoming the standards for many enterprise customers. Growing by double-digits, MSFT has been able to reap plenty of earnings/cash flows from its new cloud model. Better still, is that MSFT has been able to turn that cloud model toward regular Joes as well. Office 365, as well as its Xbox gaming/entertainment units, are also seeing plenty of growth. Total revenues for MSFT jumped by 12% last quarter on the strength of its cloud operations.All of this continues to translate into plenty of profits and growing cash balance. * 10 S&P 500 Stocks to Weather the Earnings Storm And MSFT continues to share those profits with investors. Since 2010, the tech firm has managed to grow its payout by over 253%. That's very impressive. And given its huge cash balance, strong cash flows and high margins, there's a good chance that Microsoft will keep that streak going. For retirees, that makes MSFT one of the best dividend stocks to own for the long haul. Realty Income (O)Dividend Yield: 3.80%When your corporate tag line is the "Monthly Dividend Company," there's a lot of pressure to keep to live up to that promise. Luckily for Realty Income (NYSE:O) it has been able to keep that promise for over 584 consecutive months.That steadfastness of payouts comes from Realty Income's business model. O is one of the largest owners of freestanding real estate in the country — with more than 5.700 different properties under its wing. Freestanding real state includes everything from convenience stores and restaurants to movie theaters, and automotive parts/services centers. It's the standard fare that dots our suburban landscape. With nearly 500 different tenants and its huge swath of property, O provides unmatched diversification.As if O couldn't get any better, the vast bulk of these properties are so-called triple-net leased. This means the tenants are responsible for taxes, maintenance and other costs related to the property. This allows Realty Income to keep more of its rent checks.Well, not keep. O has been rewarding shareholders for decades. It's latest increase represents its 101st monthly jump to its payout. This follows its 100th increase back in January. A monthly check that keeps growing? If that's not the perfect stock for a retiree, then I don't know what is.With a 3,8% yield, conservative balance sheet and monthly payouts, Realty Income could be a perfect dividend stock for a retirement portfolio.Disclosure: At the time of writing, Aaron Levitt did not hold a position in any of the stocks mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy for Spring Season Growth * This Is How You Beat Back a Bear Market * 7 Dental Stocks to Buy That Will Make You Smile Compare Brokers The post 5 Dividend Stocks Perfect for Retirees appeared first on InvestorPlace.
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