Home Depot's most recent trend suggests a bullish bias. One trading opportunity on Home Depot is a Bull Put Spread using a strike $202.50 short put and a strike $197.50 long put offers a potential 23.76% return on risk over the next 22 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $202.50 by expiration. The full premium credit of $0.96 would be kept by the premium seller. The risk of $4.04 would be incurred if the stock dropped below the $197.50 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 74.16 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
After Chilly Winter, Homebuilders To Share Earnings With High Hopes Ahead
Tue, 23 Apr 2019 19:06:27 +0000
As some homebuilders and home-improvement retailers start to roll out their Q1 earnings results, we might see the soft numbers in housing starts and residential building permits over the first months of the year coming home to roost as weak housing market trends persist. Remember that housing starts tumbled 8.7% in February, and building permits were down 1.6% as well, according to the Commerce Department. Unfortunately, we’re not sure yet how accurate those February housing starts and building permit numbers were.
5 Money-Saving Hacks To Increase Your Home Value
Tue, 23 Apr 2019 17:25:47 +0000
Trying to improve the value of your home can seem like a daunting task. Binging every episode of “Property Brothers” and scoping out your local Home Goods isn’t going to give you all the insight you need for this project. Below, we detail five easily accessible hacks to home improvements that make the largest impact on the value of your property. 1.
CVS Stock Isn’t in as Much Trouble as You Might Think
Tue, 23 Apr 2019 14:32:59 +0000
CVS Health (NYSE:CVS) is an organization that should do well in any part of the economic cycle, since we all need medicine and healthcare products from time to time. So on paper, CVS stock has similar characteristics to Home Depot (NYSE:HD) and Procter & Gamble (NYSE:PG).Source: Mike Mozart via FlickrBut unlike those latter names, CVS and other retail pharmacy stocks have not done well over the past few years. Since August 2015, CVS has dropped over 50%. Even worse, the owners of CVS stock have nothing on the horizon to cheer about, and CVS has tumbled 20% since January.Confronting retail pharmacy stocks, including CVS, is a double whammy of potentially crippling headwinds. First, the retail pharmacy giant must address political and public anger against rising healthcare costs. After embarrassing controversies such as the "pharma bro" scandal, the American electorate will make this a pivotal issue next year.InvestorPlace – Stock Market News, Stock Advice & Trading Tips * 10 High-Yielding Dividend Stocks That Won't Wilt Not only that, but political momentum appears to be moving further against retail pharmacy stocks. That's troubling for the owners of CVS stock. Specifically, popular presidential candidates like Bernie Sanders have supported initiatives like the "Medicare for All Act." Rising stars like Democratic and economic firebrand Andrew Yang are guaranteed to make "Medicare for All" a political talking point.That is already a huge problem for retail pharmacy stocks. But the other dark cloud impacting CVS stock is competition. I'm not just talking about individual players in a hurting sector cutting each others' throats. Rather, I'm calling out the giant gorilla in the room: Amazon (NASDAQ:AMZN).I love Amazon because it's an unrivaled American success story. But let's also be honest: Amazon's success has come at the expense of other American businesses. Now that AMZN has its eyes on retail pharmacy, it's no wonder why CVS stock is so volatile. Threats Rattle CVS, But They Won't Be FatalNo matter how you look at it, CVS stock is incredibly risky. Unfortunately, recent developments have put more pressure on CVS. But as bad as things have gotten, the headwinds facing CVS stock are not completely devastating.While the political noose appears to be tightening its grip on CVS, this dynamic also offers opportunity. Sure, CVS and other pharmacy stocks probably won't benefit anymore from overpriced prescription medicine. However, if the Democrats take over the White House next year – and that's a real possibility – millions of underserved Americans will have access to quality healthcare insurance.These Democratic policies will cause many Americans who are buying drugs in foreign countries to obtain them in the U.S. instead.Earlier this year, NPR highlighted the case of Michelle Fenner. Doctors diagnosed her son with Type 1 diabetes almost a decade ago, meaning he requires daily insulin shots to live. Last year, a three-month supply of insulin rose to $3,700.In Tijuana, Mexico, however, Fenner only has to pay an amazingly low $600. Such extraordinary discounts have inspired up to 320,000 Americans to travel abroad for healthcare reasons each year. Therefore, cost-cutting measures may initially hurt the profit margins of retail pharmacy stocks. But at the same time, the retailers would also capture revenue that previously went to foreign countries.That's not all. According to Harvard Health Publishing, millions of Americans skimp on medication because of their exorbitant costs. Again, a cap on costs would initially hurt the profit margins of pharmaceutical retailers. But in the long run, pharmacy retailers will obtain revenue from new sources, boosting CVS stock. Amazon Can't Quite Disrupt CVSAs I mentioned earlier, disruptive competition presents a serious threat to CVS stock. Amazon succeeded in disrupting multiple retail segments. Therefore, it's only natural to assume that AMZN will also cripple CVS.However, pharmacy retail is unlike other retail categories because consumers often need their medication right way. For instance, if someone has an especially explosive case of diarrhea, he's not going to wait three to five business days for a treatment to be shipped to him. Instead, he needs relief right away.As a result, I think Amazon's overall impact on pharmacies will be similar to its impact on the home-improvement sector. Home Depot (NYSE:HD) must contend with competition from the e-commerce giant. However, traditional brick-and-mortar locations serve consumers looking for home-improvement products well. They get what they want, when they want it. That attribute is much more important for people who need drugs.Having said all that, I'm not entirely gung-ho on CVS stock. The underlying company has a huge debt load. Moreover, it has struggled to adapt to its industry's changing landscape.But it's also very possible that, in the wake of the decline of CVS stock, the bad news is already reflected in the shares. Once investors realize that the bad news isn't all that terrible, CVS could rally, at least for awhile.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 High-Yielding Dividend Stocks That Won't Wilt * 4 Energy Stocks Soaring as Trump Tightens on Iran * 7 Tech Stocks With Too Much Risk, Not Enough Upside Compare Brokers The post CVS Stock Isnat in as Much Trouble as You Might Think appeared first on InvestorPlace.
Do Not Expect the Lawsuit Against Lampert to Save Sears Stock
Tue, 23 Apr 2019 10:00:20 +0000
In 1979, Nobel Prize-winning economist Milton Friedman made a then-controversial statement. He said in an interview that regulators should allow Sears (OTCMKTS:SHLDQ) to buy Kmart. In the late 1970s, Sears had accounted for about 1% of GDP and faced a rising competitive threat from Kmart. At the time, regulators would have likely not allowed Sears stock to take such a dominant position.Source: Shutterstock By the time Dr. Friedman died in 2006, competitive forces and attitudes had changed, Sears and Kmart had, in fact, become one. Emerging companies such as Walmart (NYSE:WMT) and Home Depot (NYSE:HD) had long-since supplanted the dominance of Sears and Kmart, and the long death spiral in Sears stock had begun.Today, as both Sears and Kmart fight for survival, they have now sued former chairman, Eddie Lampert for looting the company and leaving it no other option besides bankruptcy. Many possible outcomes exist for this lawsuit, which includes Lampert's ESL investment and Treasury Secretary Steven Mnuchin, a former ESL director. However, finding a result that will save Sears stock appears much less likely.InvestorPlace – Stock Market News, Stock Advice & Trading Tips Sears Trades as a Penny Stock As It Sues Its Former ChairmanLampert's actions might justify such a lawsuit. In February, Mr. Lampert bought most of the company's remaining assets for $4 billion. This left Sears stock holding billions in debt. Now, it seeks to reorganize with an estimated 425 stores. Unfortunately, it will do so without the Kenmore and DieHard brands that Lampert bought in February. It will also move forward without the iconic Craftsman brand that Lampert sold to Stanley Black & Decker (NYSE:SWK). * 10 High-Yielding Dividend Stocks That Won't Wilt However, the question investors need to ask is how winning a lawsuit against Lampert will help Sears stock. Admittedly, those who have gambling money could make a profit. Traders who bought at the 12-cent-per-share low of last December have earned a return of about sixfold. However, the stock has also lost around 80% of its value from year-ago levels.Even worse, the company appears irreparably damaged. Thanks to the bankruptcy, Sears stock now trades on the pink sheets as SHLDQ. Even worse, what remains of the business will have to move forward with only its name to bolster the company. Also, even if it wins some of its brands back from Lampert, the company holds no obvious competitive advantage. The Future of SearsWhile Sears may have served consumers well in the 20th century, it remains unclear what Sears offers today's retail world. Sears plans to open small-format stores called Sears Home & Life. These stores will sell "hardline" items such as tools, lawn and garden equipment, appliances, and mattresses. In the old Sears, hardline items had long outsold "softlines" such as clothing.Still, as mentioned earlier, the company has lost the well-regarded brands it used to control. Today, we can now see how its catalog business served as a precursor to e-commerce. However, the company stopped publishing the catalog in 1993, the year before Jeff Bezos founded Amazon (NASDAQ:AMZN). Moreover, despite the strength of Sears in hardline items, consumers have grown accustomed to buying those items elsewhere. Given these challenges, earning long-term profits in Sears stock remains difficult even at its depressed share price. The Bottom Line on Sears StockNeither suing its former chairman nor the move toward hardlines gives Sears stock much of a chance of re-emerging. Sears may have a strong case against Mr. Lampert and ESL. However, even if the lawsuit succeeds, Sears must again make itself a destination store, this time without the brands which bolstered the company in the 20th century.Unfortunately, it appears the retail world has moved on from Sears. Yes, it is possible to place one's gambling money in Sears stock and earn a massive payoff in a revitalized Sears. However, if we apply the lessons from the Milton Friedman interview, it is also possible that a merger of Amazon and Walmart could also happen someday. Such is the power of the market forces in retail that Dr. Friedman understood during his lifetime. * 5 Top Stock Trades for Tuesday: TSLA, TWTR, TTD, O While knowing the past can benefit investors, it is still the future that drives returns. SHLDQ will struggle to become part of that future.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Tech Stocks With Too Much Risk, Not Enough Upside * 7 Companies That Are Closing the CEO-Worker Wage Gap * 7 Video Game ETFs That Will Make You a Winner Compare Brokers The post Do Not Expect the Lawsuit Against Lampert to Save Sears Stock appeared first on InvestorPlace.
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.
Related Posts
Why Calix Stock Plummeted by 5% on Tuesday
Also on Market Tamer…
Follow Us on Facebook