Home Depot Stock Price Consolidates. Is It A Dividend Stock Buy?

Home Depot stock prices (NYSE:HD) have been an uptrend since the beginning of the year, adding more than 8.5% in value. Currently, HD shares are trading near a 52-week high. Home Depot will publish financial results for Q4 2019 on February 25. Wall Street analysts expect a decline with revenue of USD 25.8 billion and earnings per share of USD 2.1.

During the previous week, the stock of The Home Depot grew by 4.03%. S&P 500 index went up by 3.17% during the same period.

Home Depot stock is on our list of dividend growth stocks and currently pays a 2.29% dividend. There are three reasons why HD is on our dividend stock watch list: 1) The company’s financials are strong enough to pay a dividend; 2) Leadership believes in paying dividends, and 3) Home Depot’s stock has a positive outlook/forecast.

Markets Today

Tom Essaye, from the Sevens Report, said it best this morning, “Investors are assuming 1) The global economic rebound occurs after the Q1 Wuhan data is flushed out, and 2) The Fed will stay dovish.”

Essaye’s analysis is spot on about investors’ assumption. However, it appear that the investors’ assumptions may not be completely right as the the coronavirus is again taking headlines because of the number of deaths increasing.

According to CNBC, there are now 908 deaths and over 40,000 cases. The numbers of infected people continue to increase.

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Last week all the averages were positive and had major gains despite Friday’s drop. Tech has been leading the bull rally.

US stock futures are currently bearish. The market could be worried about stocks that have direct exposure to China. Click here to read about 4 stocks to watch because of the coronavirus.

HD Support and Resistance

Home Depot’s stock has consolidated after a protracted rally. At the moment, the #HD shares are consolidating.  Looking at the 1 day moving averages, all are signaling a buy, except Hull.  Hull is short term average.  Turning to oscillators, we see the values being bearish.  This could mean more consolidating or a bigger price correction.  Positions are to be opened from key levels.
Resistance levels: 238.20.
Support levels: 236.60

mifinance

Home Depot Stock Price Recommendations

Dec-12-19 Upgrade Credit Suisse Neutral → Outperform $225 → $235
Dec-12-19 Reiterated Telsey Advisory Group Market Perform $220 → $210
Dec-12-19 Reiterated RBC Capital Mkts Outperform $246 → $232
Dec-12-19 Reiterated Nomura Neutral $237 → $224
Dec-12-19 Reiterated Morgan Stanley Overweight $235 → $225
Dec-12-19 Reiterated JP Morgan Overweight $252 → $241
Dec-12-19 Downgrade Gordon Haskett Buy → Accumulate $230
Dec-11-19 Reiterated Stifel Buy $255 → $245
Nov-15-19 Reiterated Jefferies Buy $246 → $268
Nov-11-19 Downgrade Edward Jones Buy → Hold
Oct-08-19 Resumed Wolfe Research Outperform
Oct-08-19 Resumed Raymond James Outperform
Oct-04-19 Reiterated Oppenheimer Outperform $215 → $255
Sep-25-19 Reiterated Telsey Advisory Group Market Perform $210 → $220
Sep-17-19 Downgrade Guggenheim Buy → Neutral
Jul-16-19 Downgrade Gabelli & Co Buy → Hold
Jul-11-19 Initiated Goldman Buy $235
May-01-19 Reiterated Telsey Advisory Group Market Perform $192
Apr-11-19 Reiterated BofA/Merrill Neutral $202 → $215
Mar-20-19 Initiated Evercore ISI Outperform $215

Home Depot Stock 1 Day Moving Averages – Strong Buy

Name Value Action
Exponential Moving Average (5) 236.36 Buy
Simple Moving Average (5) 236.16 Buy
Exponential Moving Average (10) 234.54 Buy
Simple Moving Average (10) 234.08 Buy
Exponential Moving Average (20) 231.56 Buy
Simple Moving Average (20) 231.40 Buy
Exponential Moving Average (30) 229.53 Buy
Simple Moving Average (30) 227.62 Buy
Exponential Moving Average (50) 227.54 Buy
Simple Moving Average (50) 223.38 Buy
Exponential Moving Average (100) 224.73 Buy
Simple Moving Average (100) 227.31 Buy
Exponential Moving Average (200) 217.91 Buy
Simple Moving Average (200) 217.82 Buy
Ichimoku Cloud Base Line (9, 26, 52, 26) 227.96 Neutral
Volume Weighted Moving Average (20) 231.03 Buy
Hull Moving Average (9) 239.21 Sell

Donald S. Wiggins

Donald S. Wiggins

Donald S. Wiggins loves learning about business trends. He has 5 years of experience in financial news and worked his way up from a writer to a senior staff member. He is one of the original writers of alphabetastock.com with a goal to increase readership and financial news coverage throughout 2019. Wiggins is the editor and manager of “Services” category.

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