Home Depot's most recent trend suggests a bullish bias. One trading opportunity on Home Depot is a Bull Put Spread using a strike $220.00 short put and a strike $215.00 long put offers a potential 29.2% return on risk over the next 14 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $220.00 by expiration. The full premium credit of $1.13 would be kept by the premium seller. The risk of $3.87 would be incurred if the stock dropped below the $215.00 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 79.51 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
Is Home Depot Stock A Buy Right Now? Here's What Earnings, Charts Show
Wed, 04 Sep 2019 17:30:19 +0000
Home Depot is one of the biggest companies in the United States and a stock leader on the Dow Jones industrials, but is Home Depot stock a buy right now?
3 Charts Suggest Trend Traders Will Buy Homebuilders
Wed, 04 Sep 2019 13:57:57 +0000
Active traders are focusing on homebuilders due to nearby levels of support and ascending trendlines.
Wednesday’s Vital Data: Cleveland-Cliffs, Home Depot and Twitter
Wed, 04 Sep 2019 13:31:53 +0000
U.S. stock futures are bouncing back after yesterday's slide.Heading into the open, futures on the Dow Jones Industrial Average are up 0.87%, and S&P 500 futures are higher by 0.89%. Nasdaq-100 futures have added 1.00%.InvestorPlace – Stock Market News, Stock Advice & Trading TipsIn the options pits, call volume outpaced puts despite Tuesday's selloff. Overall volume settled near average levels signaling a run-of-the-mill trading session. Specifically, about 15.3 million calls and 14.9 million puts changed hands.Meanwhile, over at the CBOE, the distance between calls and puts narrowed driving the single-session equity put/call volume ratio back up to 0.73 – another one-week high. The 10-day moving average popped to 0.68.Let's take a closer look at the most actively traded options: Cleveland-Cliffs (CLF)Typically investors view the announcement of a dividend increase with glee. But with iron-ore producer Cleveland-Cliffs (NYSE:CLF), it caused traders to flee. CLF stock plunged 14.6% amid substantial volume after the company issued a press release detailing plans for a 20% bump in their dividend to 6 cents per share. Additionally, they will pay out a one-time special dividend of 4 cents per share.Falling steel and iron-ore prices amid trade war drama and global slowdown fears have plagued metal stocks like CLF, and it appears traders aren't willing to bank on a recovery just yet. While the dividend bump might be a win in the long run, Tuesday's price action shows traders are adopting a wait-and-see approach.On the charting front, the next major support looms at $5.60 so consider that the downside target if bears continue their rampage. * 7 Deeply Discounted Energy Stocks to Buy As far as options trading goes, put volume exploded Tuesday driving 70% of the day's action. Total activity rocketed to over seven times the average daily volume.The increased demand drove implied volatility higher on the day to 68% placing it at the 71st percentile of its one-year range. Premium sellers will be happy to note this is the highest level since last December. Home Depot (HD)Last month's earnings report lit a fire under Home Depot (NYSE:HD) shares, and they continue to burn bright. Tuesday's drop was well-deserved and allowed HD stock to digest recent gains ahead of its next dividend payment. Its price action is extremely bullish with a rising 20-day, 50-day, and 200-day moving averages. Buying dips and breakouts remains the name of the game.Home Depot's ex-dividend date is today and was undoubtedly the cause of yesterday's boom in options trading. Dividend seekers took to the options market for short-term control of HD shares to capture the $1.36 payout. The annual yield is 2.44%. Activity zoomed to 411% of the average daily volume, with 182,882 contracts traded. Calls accounted for 88% of the tally.Implied volatility rose to 23%, pushing it to the 32nd percentile of its one-year range. Premiums are pricing in daily moves of $3.22 or 1.4%. Bull call spreads aren't a bad way to go if you're speculating on further gains. Twitter (TWTR)Twitter (NYSE:TWTR) shares scored a long-awaited breakout Tuesday morning, but broad market weakness ultimately upended the rally. The intraday rejection pushed TWTR stock back toward the low of the day ending with a nasty upper shadow on its candlestick.Fortunately, it still closed above its 20-day moving average, keeping the recent consolidation pattern intact. While the volatility challenges buyers' resolve, the path of least resistance is still higher until support near $40 fails. * 7 Tech Industry Dividend Stocks for Growth and Income On the options trading front, the breakout attempt boosted call demand. Activity grew to 195% of the average daily volume, with 144,250 total contracts traded. 79% of the trading came from call options alone, showing strong enthusiasm backing the breakout bid.Implied volatility continues to hover at the lower end of its trading range. The 40% reading places it at the 20th percentile of its one-year range. Premiums are baking in daily moves of $1.06 or 2.5%.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Deeply Discounted Energy Stocks to Buy * 7 Stocks to Buy In a Flat Market * 10 Stocks to Buy to Ride China's Emerging Wealth The post Wednesday's Vital Data: Cleveland-Cliffs, Home Depot and Twitter appeared first on InvestorPlace.
Housing Stocks: What’s the Best Play Now?
Tue, 03 Sep 2019 21:19:00 +0000
According to the financial media talking heads, the sky is falling because key interest rates are falling. But that's just not the case. Yes, rates have continued to collapse around the world, as China devalued its currency and the pound and euro are weak ahead of the October Brexit. So, money is still sloshing around and finding its way to the U.S.Source: Shutterstock The truth of the matter is that we remain in a very positive environment for stocks right now, as the U.S. remains the oasis around the world.Now, the falling interest rates are affecting all corners of the stock market, so, today, we're going to take a look at how they're impacting the housing market — and what's the right way to play that, as investors.InvestorPlace – Stock Market News, Stock Advice & Trading TipsHome sales have turned up after 18 months of trending lower. This isn't surprising, as mortgage rates are lower per month when interest rates are lower. So, this helps with housing affordability. Basically, more people can qualify for mortgages based on their income to debt ratio. And the lower the rates, the more homes are going to sell because they're more affordable.Every home requires upkeep (if you own a home, then you know exactly what I mean!), and The Home Depot (NYSE:HD) is the place to go for supplies, whether you're a contractor or a do-it-yourselfer. And that was very evident in the company's most-recent quarter.For the second quarter of fiscal year 2019, HD topped analysts' estimates. On overall earnings of $3.5 billion for the second-quarter, earnings per share increased 3.9% year-over-year to $3.17, up from $3.05 per share in the same quarter a year ago. The consensus estimate called for earnings of $3.08 per share, so Home Depot posted a 2.9% earnings surprise.Looking forward, company management expects sales to grow 2.3% year-over-year, which is below current analyst forecasts for 2.8% annual sales growth. The company also reaffirmed its earnings guidance, as it looks for earnings per share of $10.03. That's up from earnings of $9.89 per share in 2018.Now, heading into its earnings report, HD had earned a "C" for its Total Grade. However, as you can see below, the stock was upgraded to a "B" post-earnings.Following the quarterly report, buying pressure increased, boosting the stock to new 52-week highs. In fact, it hit more 52-week highs this week. Clearly, the "smart money" is still very much interested in this stock. That's also reflected in HD's strong Quantitative Grade-the most important variable in my stock grading formula. It's ultimately why I recommended it to my Growth Investor subscribers as a High-Growth stock.One such company is Dr. Horton, Inc. (NYSE:DHI), which as a homebuilder seems to be benefiting from the low interest rate environment. After all, at times when a mortgage costs less to obtain for the same house, more people will take the leap.That being said, in this battle of housing stocks, we can't forget about the homebuilders! Because there's a rising demand for homes, more are being built, too. There are plenty of folks who are getting older and downsizing, but they want homes with easy upkeep. So, they turn to the new models.So, against that landscape, let's see how THIS particular homebuilder is looking. For the company's fiscal third-quarter earnings report on July 30, DHI announced earnings of $1.26 per share on 10.6% year-over-year increase to $4.9 billion in revenue. This topped expected earnings of $1.07 per share on $4.5 billion in revenue. So, the company posted a 17.6% earnings surprise and an 8.9% sales surprise.For a fuller picture, here's how DHI stacks up in Portfolio Grader.Both its Fundamental and Quantitative Grades are B-rated, which isn't surprising given the solid earnings report and recent momentum. On August 22, DHI hit a new 52-week high of $50.64, and the shares traded less than a dollar from that level this past week.That's pretty impressive given the market selloff we've been facing. While good stocks like HD and DHI can't entirely avoid market selloffs, they do tend to bounce back quickly and with force. As you can see in the one-month chart below, even at a time when the S&P 500 is down roughly 3%, DHI is UP 4.6%, while HD is up a good 11.9%!Like D.R. Horton, Home Depot just hit new 52-week highs.While both stocks are B-rated in Portfolio Grader, I believe HD will be the winner over the long term. Over the years, Home Depot has become the world's biggest home improvement retailer, and it offers over one million products in its more than 2,000 stores across the U.S., Canada and Mexico for DIY shoppers, professional contractors and others.The good news is that the "smart money" on Wall Street knows this — and is showing a clear preference for "Bulletproof" stocks like this one. They've already tipped their cards by pouring their capital in. And the buying pressure that results from this is exactly what my Portfolio Grader system is designed to spot!There's Another Factor At Work Here, TooHaving spent time on Wall Street, these big institutional investors quickly learn that you need dividends to grow a portfolio over time, and I think that's another reason for this clear preference. The income really helps smooth over the rough patches.Dividend growth stocks are especially important today – when the global bond market is just going haywire. And even the 30-year Treasury can't be relied upon for good yield anymore. Recently, its yield dropped below 2% for the first time ever!So — whether you're managing big institutional cash, or your own portfolio – you're going to need what I call the Money Magnets.Not only did these stocks earn an A in my Portfolio Grader, thanks to strong buying pressure and great fundamentals …The stocks also earn an A in my Dividend Grader. These stocks are able to pay great yields – and have the strong business model to back it up!All in all, I've got 27 strong dividend growth stocks for you, almost all of which yield more than the S&P 500. These stocks are poised to do well as we continue to see international capital flow to the U.S. markets. Click here to see how I found these stocks, and how you can get great performance out of YOUR portfolio — come what may.Louis Navellier is a renowned growth investor. He is the editor of four investing newsletters: Growth Investor, Breakthrough Stocks, Accelerated Profits and Platinum Growth. His most popular service, Growth Investor, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 "Boring" Stocks With Exciting Prospects * 15 Cybersecurity Stocks to Watch as the Industry Heats Up * 5 Healthcare Stocks to Buy for Healthy Dividends The post Housing Stocks: What's the Best Play Now? appeared first on InvestorPlace.
Housing Stocks: Surprising Picks as Leaders of the Coming Rally
Tue, 03 Sep 2019 20:29:14 +0000
When I saw the headline below last Tuesday, it made me angry. Really angry. Check this out.Source: Shutterstock A "Lehman-like" market disaster could happen this week, analyst warnsSeriously?InvestorPlace – Stock Market News, Stock Advice & Trading TipsThe analyst cited negative sentiment triggered by the inversion of the yield curve and how it correlated to 2008. (Here's the article if you really want to read it.) I think he needs to be held responsible if he's wrong.I am sick of hacks trying to make names for themselves with insane and irresponsible Doomsday Calls. Do yourself a favor and ignore them. Instead of becoming fearful with these crazy calls, now is the time to set yourself up for big profits.I think we're headed for one of the greatest "melt-ups" (as my colleague Steve Sjuggerud accurately calls it) over the next 12-18 months. The new issue of Investment Opportunities will focus on stocks that I believe will be among the leaders of that rally, and I want to give you a preview of my analysis today. Already Moving HigherLet's dispense quickly with the idea that a recession is around the corner. I shared my full market outlook with you this weekend, but I've written before about the inverted yield curve and talked about it at length in a recent MoneyLine podcast (which you can listen to here).I'll share one stat with you now: Over the last 40 years, an inverted yield curve has actually been more of a buy signal than a recession indicator. Since 1978, the market has gained 20%+ on average one year after the inversion event when the 10-year Treasury begins to yield less than the two-year Treasury.Add in the likelihood that the Fed will lower interest rates a couple more times this year, and the odds of a major rally increase.But even if you're skeptical, please don't ignore a tried-and-true buying opportunity that so many other investors are missing amid the panic.I'm talking about housing stocks. I know. They don't sound as exciting as next-generation batteries, artificial intelligence, autonomous vehicles, or personalized medicine. But who cares — as long as they can make us money?Take a look at the iShares U.S. Home Construction ETF (BATS:ITB). It broke above $40 last week for the first time since last June. That is a potentially major breakout going back to levels from 18 months prior. It also broke out of a consolidation phase that lasted about three months.Those are two bullish technical indicators, and I see more upside ahead with very low housing stock valuations and strong fundamentals.You may not hear much about strong fundamentals in the current environment, but they're there. Home Depot (NYSE:HD) is at all-time highs, and Lowe's (NYSE:LOW) is within about 6% of its peak. Both reported solid sales growth, as did consumer bellwethers Walmart (NYSE:WMT) and Target (NYSE:TGT). This tells us that the consumer is doing pretty well, and so is the housing market.It's simple if you ignore the noise and doomsday headlines. Long-term interest rates are down, which means mortgage rates are, too. Any way you slice it, lower mortgage rates boost housing. They make homes more affordable.We already see potential home buyers on the move. Mortgage applications (the orange line below) have turned sharply higher as rates (the blue line) have fallen.Note how mortgage originations fell to their lowest level since mid-2014 earlier this year but are back on the upswing — to their highest levels in about two years, in fact. The last time mortgage rates were this low (late 2016), mortgage originations spiked above $600 billion. What to Buy NowI look for a similar spike to occur in the next few quarters. A move from $344 billion in the first quarter to over $600 billion would be a massive 75% surge … and would light an even bigger fire under housing stocks.The opportunity is more than just low rates. There are multiple catalysts to drive housing stocks higher in the coming months, including high employment, consumers' willingness to spend, still-low valuations, and millennials buying homes as they start families. That last one is especially big and could last for years, as we are in the early stages of the greatest wealth transfer in U.S. history, from the baby boomers to the millennials.I focus a lot on cutting-edge trends and breakthroughs, like batteries that will change the way we live and communicate. That's where a lot of the life-changing gains will come from. But I don't ignore more "traditional" trends like housing when the time is right, like now.I'll have my full analysis on housing stocks and at least one related stock recommendation in the new Investment Opportunities issue this Thursday. I wanted to let you know today so you can have them on your radar, too.Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of Investment Opportunities and Early Stage Investor. He has dedicated his career to getting investors into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA), +1,044% in Tesla (TSLA), +611% in Liquefied Natural Gas Limited (LNGLY), +324% in Bitcoin Services (BTSC), just to name a few. If you're interested in making triple-digit gains from the world's biggest investment trends BEFORE anyone else, click here to learn more about Matt McCall and his investments strategy today. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Safe Stocks to Buy This Summer * The 5 Best Telecom Stocks to Buy Now * 6 Innovative Stocks With Big Long-Term Growth Potential The post Housing Stocks: Surprising Picks as Leaders of the Coming Rally appeared first on InvestorPlace.
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