Home Depot's most recent trend suggests a bullish bias. One trading opportunity on Home Depot is a Bull Put Spread using a strike $227.50 short put and a strike $222.50 long put offers a potential 14.42% return on risk over the next 7 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $227.50 by expiration. The full premium credit of $0.63 would be kept by the premium seller. The risk of $4.37 would be incurred if the stock dropped below the $222.50 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 71.43 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
The Bull Market in Chipotle Stock Is Far From Finished
Wed, 11 Sep 2019 14:21:00 +0000
Although Chipotle (NYSE:CMG) has been red hot recently, it finally met a small roadblock on Tuesday. Here's an in-depth explanation for the session's uncomfortable selloff and, more importantly, what likely lies ahead for CMG stock.Source: Northfoto / Shutterstock.com CMG stock has enjoyed a terrific 2019. Shares of Chipotle have returned an amazing 83%. That's more than Home Depot (NYSE:HD), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL) or most any other large-cap stock out there. And that's on top of 2018's gains of nearly 50% in CMG. Yet as recently as Monday, shares were up nearly 99% and hitting all-time-highs.So, what gives?InvestorPlace – Stock Market News, Stock Advice & Trading TipsOn Tuesday, New York City filed a lawsuit against the fast-fresh restaurant operator. Authorities allege the company violated its Fair Workweek Law. But despite investors not taking any chances with CMG stock, today's troubles aren't remotely close to being a repeat of Chipotle's food scare scandal from a couple years back.To be clear, I'm not suggesting Chipotle stock will walk away scot-free. There will be a monetary slap on the wrist when all is said and done as NYC wants at least $1 million in restitution. utlimately though, the damage will be negligible and Chipotle is working dutifully alongside officials to ensure procedures and systems are in place to comply with the city's laws in the future.The other fact to remember is Tuesday's story won't impact Chipotle's stunning and well-deserved recovery over the past two years from the nadir of its food scare crisis. The company is poised to deliver more growth with its rapidly building digital leadership through e-commerce sales, mobile apps and loyalty programs. * The 10 Best Index Funds to Buy and Hold According to Wedbush's Nick Setyan, Chipotle's strategic sales channels should usher in a multi-year streak of mid-to-high single-digit same-store sales growth. Along with Monday's upbeat forecast, Wedbush upgraded CMG stock from neutral to buy, while slapping a $980 12-month price target on shares. CMG Stock Price Weekly Chart If investors look at the Chipotle stock chart for today, conditions are serving up a nice-looking pullback in the making. Tuesday's pressure has taken shares back into a test of uptrend support and toward a test of its prior, pre-scandal, all-time-high set in late 2015 and the stock's massive corrective base.Ideally, another couple sessions of profit-taking or short sellers trying their hand once again in CMG will take shares down to $755 – $760. And buyers stepping up to buy technical support around the old high will enjoy immediate gratification. Don't hold your breath though.Technically, the real world rarely works out so neatly on the price chart. That's not to say Chipotle stock isn't a buy. It is, but be prepared for price volatility around any future purchases of CMG stock.My suggestion is to size the initial buy decision in shares with the intention of buying additional CMG stock on weakness into a wide area of Fibonacci support from $565 – $773. Additionally, as the more extreme levels could produce some intestinal discomfort for any investors acting too aggressively, I'd also advise waiting for a bullish stochastics crossover or for actual oversold conditions to come into play before making that first move.Disclosure: Investment accounts under Christopher Tyler's management recently exited Chipotle stock (CMG) and / or its derivatives. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post The Bull Market in Chipotle Stock Is Far From Finished appeared first on InvestorPlace.
Amazon, Home Depot Sign On As Tenants To Multi-Story Seattle Warehouse
Wed, 11 Sep 2019 13:12:49 +0000
Amazon.com, Inc. (NASDAQ: AMZN) will take almost 500,000 square feet of space and Home Depot (NYSE: HD) nearly 100,000, according to the Wall Street Journal. The three-story building is reportedly 590,000 square feet and located minutes from downtown Seattle and the port.
Why RH Stock Fell after Q2 Beat, Upbeat Guidance
Wed, 11 Sep 2019 11:38:51 +0000
RH posted stronger-than-expected second-quarter results after the markets closed on Tuesday. The company also increased its fiscal EPS outlook.
Why I’m Worried When Home Depot Stock Gets North of $230
Wed, 11 Sep 2019 09:16:02 +0000
After a rough late 2018, shares of home improvement retailer Home Depot (NYSE:HD) have staged a huge rally in 2019, rising 35% year-to-date to fresh all time highs. But, with HD stock price north of $230, I'm worried that valuation friction will ultimately short circuit this big 2019 rally in Home Depot stock.Source: Mihai_Andritoiu / Shutterstock.com To be sure, there's a lot to like about HD stock here and now. The U.S. economy is picking up steam. Housing data broadly looks pretty good. The labor market remains healthy. Rates are still low. Trade conditions are improving. Hurricane Dorian has done huge damage in the Southeast, requiring massive rebuilding efforts.But, there's also one big thing not to like about HD stock here and now: valuation.InvestorPlace – Stock Market News, Stock Advice & Trading TipsHome Depot is firing off multi-year low revenue, comparable sales, margin, and profit growth rates. Yet, HD stock trades at its richest valuation in several years. That's not a winning combination – especially if the long end of the yield curve rises as the outlook for the U.S. economy improves (low rates help support big valuations).As such, I'm worried about HD stock here and now. I love Home Depot stock long term. But, I don't think the current valuation is sustainable in the coming months. Lots to Like About Home Depot StockThere's a lot to like about the fundamentals underlying Home Depot stock. * 7 Deeply Discounted Energy Stocks to Buy In the near term, the U.S. economy is picking up steam, as evidenced by a huge upswing in Citi's Economic Surprise Index, which measures how U.S. economic data is doing with respect to consensus estimates. For the first time in 2019, that Index just swung into positive territory. At the same time, housing data broadly looks pretty good. Existing and new home sales are still largely trending higher, as are building permits and new housing starts. Trade tensions between the U.S. and China are easing. Hurricane Dorian should provide a near term lift to home improvement and repair sales in the Southeast.Against the backdrop of all that, rates are still low, Americans are still working, and wages are still moving higher. Thus, in the near term, Home Depot should benefit as the U.S. economy and housing market gain momentum against the backdrop of a healthy labor market.Meanwhile, in the long run, Home Depot has crafted a niche for itself as America's favorite home improvement retailer by becoming a one-stop shop that offers everything home improvement from product sales, to expert help, to installation services, and much more. It's tough to see anyone unseating Home Depot in this market — they are just so big and so dominant in the home improvement space.Consequently, long term, as goes the U.S. economy and housing market, so will go Home Depot stock.In the big picture, then, both the near- and long-term fundamentals supporting HD stock are favorable. That should lead to shares heading higher, right? Current Valuation is UnsustainableThe one big impediment to Home Depot stock heading higher in the near term is the stock's valuation.Consider this. Home Depot's sales are expected to rise just over 2% this year on a 4% increase in comparable sales. Both of those growth rates are multi-year low growth rates. Over the next several years, Home Depot's sales growth isn't projected to rise much above 5% — slower than what the company has reported over the past five years.Meanwhile, margins are expected to rise very slightly this year, a sharp divergence from the big margin expansion years Home Depot experienced earlier this decade. According to Street estimates, margins aren't expected to move much higher over the next several years as it seems like gross margins are maxed out, and mid-single-digit revenue growth isn't enough to drive significant operating leverage.Moving down the income statement, profit growth is expected at less than 3% this year. Since 2014, Home Depot has fired off nothing but double-digit profit growth rates. Home Depot is projected to be a sub-10% profit grower over the next five years.The big picture shows Home Depot is firing off multi-year low growth rates, and will remain in slow-growth mode for the foreseeable future. In stark contrast to this reality, Home Depot stock trades at 23-times forward earnings, versus a five-year average forward earnings multiple of 20x.To be sure, this valuation premium is warranted by the fact that the 10-year Treasury yield has dipped to 1.6%. Yet, the long end of the yield curve is starting to move higher. It should continue to move higher for the foreseeable future as the outlook for the U.S. economy improves. As it does, HD stock's extended 23x forward earnings multiple will be under pressure. Bottom Line on Home Depot StockLong term, I like Home Depot stock. This is a company which has sustainable dominance in the secular growth U.S. home improvement retail market. That sustained dominance will drive steady revenue and profit growth in the long run — the sum of which should drive HD stock higher. * 7 Stocks to Buy In a Flat Market But, in the near term, nothing about Home Depot shares appeals to me. The current valuation is extended relative to its historical norm. Yet, the company growth profile is weak relative to its historical norm. This divergence is not a favorable one. While it is supported today by low yields, yields should creep higher over the next few months as the U.S. economic outlook improves. As they do creep higher, the divergence between the stock's valuation and growth profile will be corrected.This correction should ultimately result in HD stock pulling back towards $200.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Why I'm Worried When Home Depot Stock Gets North of $230 appeared first on InvestorPlace.
UPDATE 3-White House adviser plays down expectations for U.S.-China talks
Wed, 11 Sep 2019 00:10:07 +0000
A senior White House adviser tamped down expectations on Tuesday for the next rounds of U.S.-China trade talks, urging investors, businesses and the public to be patient about resolving the two-year trade dispute between the world's two largest economies. “If we're going to get a great result, we really have to let the process take its course,” Peter Navarro said on CNBC. U.S. President Donald Trump's administration is seeking sweeping changes to China's policies and practices on intellectual property protection, the forced transfer of U.S. technology to Chinese firms, American companies' access to China's markets and industrial subsidies.
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