Saturday, December 23, 2017

Home Depot Stock Price


Home Depot announced a $ 1.97 second quarter profit this quarter in line with the Street Consensus, announcing a slight increase (4 cents or 0.6%) in its 2016 EPS Guide for the full year, The actions have changed little in the pre-trade (I write this before the conference call), and at first glance, you might think it was a quarter "that has nothing to do here." Looking back at the numbers leads to a different and less optimistic approach.

US Home Depot Stores Growth UU In the July quarter, at 5.4%, it was the lowest nine-quarter growth rate in the first quarter of 2014. Global growth in HD comparable revenue of 4.2% also reflected a slowdown in quarters (see below)

how much Home Depot Stock Price?

While the results of the HD compilation generally agreed with analysts' expectations for the quarter, analysts on the sales side - and I was one for 11 years - blamed them for losing the forest. HD compositions slow down because of the pent-up home improvement needs are gradually being phased out, and Millennials just do not buy as many homes as previous generations.

The table shows the growth in sales of HD Comp stores for global and US operations. UU During the last 10 quarters.

Home Depot is undoubtedly one of the best-managed companies in corporate America, and its 5-year chart is a miracle. If all looked so good! However, the key to investing is in the second derivative, and the HD results show that while the growth rate in your business is still high enough to deliver excellent ROI, it slows down.

Therefore, it is not a Katie-bar-the-door and pulls the share price, but with a price-earnings ratio of 21.7x in the EPS forecast of the administration for the financial year 2016, I consider the HD promotions conceivably even more deserved. 10% retracement than the S & P 500 overheated. So, how can HD revenue be protected? Write calls against existing positions.

As far as the chain of HD options is concerned, the last operation in a call for September 2016 with the exercise price of $ 140 was $ 1.41. In order for you to reap the rewards, and if your shares do not rise another 3% next month, that's pure profit. It also adds $ 2.76 to the annual Home Depot payout. The HD Stocks are not really a performance game with an annualized yield of 1.76% on the previous day, but the premium on the calls you wrote, a strategy I call steroid dividends, actually makes a strong one annualized return 3.0%, well above the current payment of S & P 500 below 2%.
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