Home Depot looks to bounce from 52-week low

What's Happening With HD View more about HD >

Home Depot (HD) fell to a new 52-week low of $64.41 on December 20, and the stock is currently down 13% on the year. A slowing housing market is pulling down the home improvement retailer, but the stock could rally following two housing-related reports due this week.

Technical Analysis

HD was recently trading at $164.16 down $51.27 from its 12-month high and $1.93 above its 12-month low. InvestorsObserver’s Stock Score Report gives HD a 41 long-term technical score and a 37 short-term technical score. The stock has recent support above $163.25 and recent resistance below $175. Of the 21 analysts who cover the stock 13 rate it Strong Buy, 2 rate it Buy, 6 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell, HD gets a score of 50 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

After years of steady gains, home improvement retailer Home Depot turned bearish in September and the stock is now sitting just pennies above its 52-week low. Concerns are mounting on the housing market as the Federal Reserve continues to lift interest rates. While rates remain incredibly low on an historic basis, the recent string of rate hikes will ultimately have an impact on the housing sector and homebuilders and housing-related stocks have been under pressure. Home Depot is coming off a strong quarterly report in November with better than expected earnings and revenue, but the quarterly report was not enough to push the stock higher, and as the overall market weakened HD moved strongly lower. Given the company’s recent strong report, and its upward revised forward guidance, shares should rebound nicely if the overall market finds its footing. There will be two housing reports this week on pending home sales and new home sales, and these reports will help drive sentiment on the sector. The stock’s valuation has fallen to an attractive level with a forward P/E of 15.9, so the downside is likely limited at this time. Analysts see nice upside in the stock with an average price target of $208.43.

HD
About Home Depot Inc. (The)

Home Depot is the world's largest home improvement specialty retailer, operating nearly 2,300 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the United States, Canada, and Mexico. Its stores offer numerous building materials, home improvement products, lawn and garden products, and decor products and provide various services, including home improvement installation services and tool and equipment rentals. The acquisition of distributor Interline Brands in 2015 allowed Home Depot to enter the maintenance, repair, and operations sector, while the tie-up with Company Store brought textile expertise to the brand.

  • Last Price:
    $224.67
  • Previous Close:
    $228.12
  • Change:
    $-3.45 (-1.51%)
  • Open:
    $227.99
  • Volume:
    7,359,483
  • Average Volume (100 Day):
    3,980,556
  • Market Capitalization:
    $246.0 B
  • Day's Range:
    $224.23 - $230.05
  • Dividend Yield:
    2.39%
  • 52-week Range:
    $235 - $158.09
  • P-E:
    22.10
  • EPS:
    $10.05
  • Earnings Date:
    11/12/19
  • Ex Dividend Date:
    9/4/19
  • Sector:
    Consumer Cyclical
  • Industry:
    Home Improvement Stores
  • Analyst Average Recommendation:
    Moderate Buy

Already a member?

Login to see your Stocks to Watch Trade Ideas.

Not yet a member?

Receive a Morning Action trade idea every market day in the Morning Update, plus Stocks to Watch Trade Ideas every Saturday.

Become A Member

|