|Bid||233.81 x 1100|
|Ask||234.39 x 1100|
|Day's Range||232.33 - 234.97|
|52 Week Range||158.09 - 235.49|
|Beta (3Y Monthly)||1.15|
|PE Ratio (TTM)||23.34|
|Earnings Date||Nov 19, 2019|
|Forward Dividend & Yield||5.44 (2.33%)|
|1y Target Est||225.18|
Marcus also said his organization is raising $300 million for veteran aid in conjunction with 4-5 other philanthropy organizations. About 200 people turned out to celebrate the Veterans in Business Awards honorees Thursday morning at Twelve Atlantic Station hotel.
Home Depot (NYSE:HD) stock continues to ride high. An earnings beat in its second-quarter sent Home Depot stock surging to over $232 per share an all-time high. Lower interest rates and a renewed interest in the housing market have also helped HD stock.Source: Rob Wilson / Shutterstock.com However, not all headwinds for Home Depot stock have gone away. Home prices have plateaued in many major markets. Also, an inverted yield curve and the length of the current economic growth period point to a possible recession. * 7 Discount Retail Stocks to Buy for a Recession Although HD stock remains a long-term winner, investors should not add to positions at these levels.InvestorPlace - Stock Market News, Stock Advice & Trading Tips HD Stock Is a Long-Term Winner Facing Near-Term StrugglesTaking a negative view of Home Depot stock is a difficult decision. After all, it did not grow to almost 2,300 stores and a $250 billion-plus market cap by making poor decisions. HD has delivered massive returns to investors over the last few decades and remains a solid long-term investment now.Admittedly, bulls have many signs of optimism on which to base their call. The Fed lowered interest rates over the summer, setting up the highest level of mortgage originations since 2018. Moreover, the company announced they had beaten estimates by nine cents per share on Aug. 20. This sparked a rally that took the HD stock price from about $208 per share to the approximate $232 per share level where it trades today.Furthermore, both Home Depot stock and its main peer Lowe's (NYSE:LOW) continue to show resiliency. It continues growth even as a mature company. It also has fended off any potential threat from Amazon (NASDAQ:AMZN), a company many feared would "take over retail" a few short years ago. Multiple Does Not Price in a Possible RecessionHowever, the recent rally took the forward price-to-earnings (PE) ratio to about 21.2, very close to the average PE of almost 23 it has experienced over the last five years. Admittedly, a 21.2 forward multiple is not high by S&P 500 standards. However, it seems pricey when analysts predict only 2.4% profit growth this year and 8.4% in fiscal 2021.Also, many signs point to tough times coming soon. For one, the company missed its revenue estimates. Although the market has chosen to ignore that fact, it indicates some level of struggle for the home improvement giant. Moreover, investors cannot know for sure that the economy has avoided a recession. An inverted yield curve has frequently pointed to a downturn within two years in the past.Home price growth appears mixed as well. Thanks to the lower rates, analysts forecast annual price growth of 5.4% over the next year. Still, that is an average number. Many of the larger, pricier markets such as New York or Seattle continue to see a decline in prices. Since many consider Home Depot stock a proxy for the housing market, this indicates contradiction more than growth.Further, the current economic expansion is in its 11th year. This does not mean the economy will stop growing. However, it dramatically increases the chances of a downturn. It also calls into question whether investors should pay a higher multiple for Home Depot stock in such an environment. The Bottom Line on Home Depot StockHome Depot stock has become the solid equity that investors should avoid for now. In a sense, the recent run in HD stock makes sense. Interest rates have fallen in an environment where home prices have plateaued in many major markets. Without a doubt, this increases home affordability for many.Still, the current economic expansion has become long in the tooth. Moreover, an inverted yield curve has always pointed to a recession over the last 60-plus years.Although Home Depot has matured as a company, its ability to maintain growth over the last few decades is a testament to its long-term resiliency. I still believe in the future of Home Depot stock, and I do not recommend selling at these levels, except to log some profits.However, given the current circumstances, this seems like a time where investors should try to buy Home Depot stock on the cheap, not when it trades at a higher multiple.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 * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post Hold out for a Lower Valuation Before Buying Home Depot Stock appeared first on InvestorPlace.
Marcus is the Lifetime Achievement Award recipient at Atlanta Business Chronicle's inaugural Veterans in Business Awards.
In the booming economy of 2019, consumer discretionary stocks were skyrocketing until they weren’t. Here is a brief rundown of a few of the top stocks in this sector for this year.
Breaking down Atlanta's top 25 pro athletes, who are worth a combined $354.7 million in cash earnings for 2019.
Although Chipotle (NYSE:CMG) has been red hot recently, it finally met a small roadblock on Tuesday. Here's an in-depth explanation for the session's uncomfortable selloff and, more importantly, what likely lies ahead for CMG stock.Source: Northfoto / Shutterstock.com CMG stock has enjoyed a terrific 2019. Shares of Chipotle have returned an amazing 83%. That's more than Home Depot (NYSE:HD), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL) or most any other large-cap stock out there. And that's on top of 2018's gains of nearly 50% in CMG. Yet as recently as Monday, shares were up nearly 99% and hitting all-time-highs.So, what gives?InvestorPlace - Stock Market News, Stock Advice & Trading TipsOn Tuesday, New York City filed a lawsuit against the fast-fresh restaurant operator. Authorities allege the company violated its Fair Workweek Law. But despite investors not taking any chances with CMG stock, today's troubles aren't remotely close to being a repeat of Chipotle's food scare scandal from a couple years back.To be clear, I'm not suggesting Chipotle stock will walk away scot-free. There will be a monetary slap on the wrist when all is said and done as NYC wants at least $1 million in restitution. utlimately though, the damage will be negligible and Chipotle is working dutifully alongside officials to ensure procedures and systems are in place to comply with the city's laws in the future.The other fact to remember is Tuesday's story won't impact Chipotle's stunning and well-deserved recovery over the past two years from the nadir of its food scare crisis. The company is poised to deliver more growth with its rapidly building digital leadership through e-commerce sales, mobile apps and loyalty programs. * The 10 Best Index Funds to Buy and Hold According to Wedbush's Nick Setyan, Chipotle's strategic sales channels should usher in a multi-year streak of mid-to-high single-digit same-store sales growth. Along with Monday's upbeat forecast, Wedbush upgraded CMG stock from neutral to buy, while slapping a $980 12-month price target on shares. CMG Stock Price Weekly Chart If investors look at the Chipotle stock chart for today, conditions are serving up a nice-looking pullback in the making. Tuesday's pressure has taken shares back into a test of uptrend support and toward a test of its prior, pre-scandal, all-time-high set in late 2015 and the stock's massive corrective base.Ideally, another couple sessions of profit-taking or short sellers trying their hand once again in CMG will take shares down to $755 - $760. And buyers stepping up to buy technical support around the old high will enjoy immediate gratification. Don't hold your breath though.Technically, the real world rarely works out so neatly on the price chart. That's not to say Chipotle stock isn't a buy. It is, but be prepared for price volatility around any future purchases of CMG stock.My suggestion is to size the initial buy decision in shares with the intention of buying additional CMG stock on weakness into a wide area of Fibonacci support from $565 - $773. Additionally, as the more extreme levels could produce some intestinal discomfort for any investors acting too aggressively, I'd also advise waiting for a bullish stochastics crossover or for actual oversold conditions to come into play before making that first move.Disclosure: Investment accounts under Christopher Tyler's management recently exited Chipotle stock (CMG) and / or its derivatives. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post The Bull Market in Chipotle Stock Is Far From Finished appeared first on InvestorPlace.
Amazon.com, Inc. (NASDAQ: AMZN) will take almost 500,000 square feet of space and Home Depot (NYSE: HD) nearly 100,000, according to the Wall Street Journal. The three-story building is reportedly 590,000 square feet and located minutes from downtown Seattle and the port.
RH posted stronger-than-expected second-quarter results after the markets closed on Tuesday. The company also increased its fiscal EPS outlook.
After a rough late 2018, shares of home improvement retailer Home Depot (NYSE:HD) have staged a huge rally in 2019, rising 35% year-to-date to fresh all time highs. But, with HD stock price north of $230, I'm worried that valuation friction will ultimately short circuit this big 2019 rally in Home Depot stock.Source: Mihai_Andritoiu / Shutterstock.com To be sure, there's a lot to like about HD stock here and now. The U.S. economy is picking up steam. Housing data broadly looks pretty good. The labor market remains healthy. Rates are still low. Trade conditions are improving. Hurricane Dorian has done huge damage in the Southeast, requiring massive rebuilding efforts.But, there's also one big thing not to like about HD stock here and now: valuation.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHome Depot is firing off multi-year low revenue, comparable sales, margin, and profit growth rates. Yet, HD stock trades at its richest valuation in several years. That's not a winning combination - especially if the long end of the yield curve rises as the outlook for the U.S. economy improves (low rates help support big valuations).As such, I'm worried about HD stock here and now. I love Home Depot stock long term. But, I don't think the current valuation is sustainable in the coming months. Lots to Like About Home Depot StockThere's a lot to like about the fundamentals underlying Home Depot stock. * 7 Deeply Discounted Energy Stocks to Buy In the near term, the U.S. economy is picking up steam, as evidenced by a huge upswing in Citi's Economic Surprise Index, which measures how U.S. economic data is doing with respect to consensus estimates. For the first time in 2019, that Index just swung into positive territory. At the same time, housing data broadly looks pretty good. Existing and new home sales are still largely trending higher, as are building permits and new housing starts. Trade tensions between the U.S. and China are easing. Hurricane Dorian should provide a near term lift to home improvement and repair sales in the Southeast.Against the backdrop of all that, rates are still low, Americans are still working, and wages are still moving higher. Thus, in the near term, Home Depot should benefit as the U.S. economy and housing market gain momentum against the backdrop of a healthy labor market.Meanwhile, in the long run, Home Depot has crafted a niche for itself as America's favorite home improvement retailer by becoming a one-stop shop that offers everything home improvement from product sales, to expert help, to installation services, and much more. It's tough to see anyone unseating Home Depot in this market -- they are just so big and so dominant in the home improvement space.Consequently, long term, as goes the U.S. economy and housing market, so will go Home Depot stock.In the big picture, then, both the near- and long-term fundamentals supporting HD stock are favorable. That should lead to shares heading higher, right? Current Valuation is UnsustainableThe one big impediment to Home Depot stock heading higher in the near term is the stock's valuation.Consider this. Home Depot's sales are expected to rise just over 2% this year on a 4% increase in comparable sales. Both of those growth rates are multi-year low growth rates. Over the next several years, Home Depot's sales growth isn't projected to rise much above 5% -- slower than what the company has reported over the past five years.Meanwhile, margins are expected to rise very slightly this year, a sharp divergence from the big margin expansion years Home Depot experienced earlier this decade. According to Street estimates, margins aren't expected to move much higher over the next several years as it seems like gross margins are maxed out, and mid-single-digit revenue growth isn't enough to drive significant operating leverage.Moving down the income statement, profit growth is expected at less than 3% this year. Since 2014, Home Depot has fired off nothing but double-digit profit growth rates. Home Depot is projected to be a sub-10% profit grower over the next five years.The big picture shows Home Depot is firing off multi-year low growth rates, and will remain in slow-growth mode for the foreseeable future. In stark contrast to this reality, Home Depot stock trades at 23-times forward earnings, versus a five-year average forward earnings multiple of 20x.To be sure, this valuation premium is warranted by the fact that the 10-year Treasury yield has dipped to 1.6%. Yet, the long end of the yield curve is starting to move higher. It should continue to move higher for the foreseeable future as the outlook for the U.S. economy improves. As it does, HD stock's extended 23x forward earnings multiple will be under pressure. Bottom Line on Home Depot StockLong term, I like Home Depot stock. This is a company which has sustainable dominance in the secular growth U.S. home improvement retail market. That sustained dominance will drive steady revenue and profit growth in the long run -- the sum of which should drive HD stock higher. * 7 Stocks to Buy In a Flat Market But, in the near term, nothing about Home Depot shares appeals to me. The current valuation is extended relative to its historical norm. Yet, the company growth profile is weak relative to its historical norm. This divergence is not a favorable one. While it is supported today by low yields, yields should creep higher over the next few months as the U.S. economic outlook improves. As they do creep higher, the divergence between the stock's valuation and growth profile will be corrected.This correction should ultimately result in HD stock pulling back towards $200.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Why I'm Worried When Home Depot Stock Gets North of $230 appeared first on InvestorPlace.
A senior White House adviser tamped down expectations on Tuesday for the next rounds of U.S.-China trade talks, urging investors, businesses and the public to be patient about resolving the two-year trade dispute between the world's two largest economies. "If we're going to get a great result, we really have to let the process take its course," Peter Navarro said on CNBC. U.S. President Donald Trump's administration is seeking sweeping changes to China's policies and practices on intellectual property protection, the forced transfer of U.S. technology to Chinese firms, American companies' access to China's markets and industrial subsidies.
As contrarians running a large-cap value strategy, our stock-picking discipline is organized around taking regular maverick risk on companies that meet our 8 criteria Continue reading...
U.S. stock futures are trading higher this morning in a continuation of last week's breakout. Optimism surrounding recent strides in the U.S.-China trade war survived the weekend intact, and investors have returned to the business of buying.Source: Shutterstock Ahead of the bell, futures on the Dow Jones Industrial Average are up 0.22% and S&P 500 futures are higher by 0.34%. Nasdaq-100 futures have added 0.28%.In the options pits on Friday, calls were the hot commodity during a session that saw overall volume climb to above-average levels. Approximately 20.1 million calls and 15.4 million puts traded.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMeanwhile, over at the CBOE, Thursday's shallow reading in the single-session equity put/call volume ratio was followed-up by another low number of 0.56. The 10-day moving average continued its rollover with a drop to 0.66.Options traders favored calls in several marquee names. Home Depot (NYSE:HD) shares stretched to a new record high amid higher than usual options volume. Snap (NYSE:SNAP) finally broke out of a falling wedge pattern on high volume and unusual call activity. Finally, Amazon (NASDAQ:AMZN) shares paused after Thursday's breakout attempt, while buyers continued to chase calls. * 10 Buy-and-Hold Stocks to Own Forever Let's take a closer look: Home Depot (HD)Home Depot shares ended the week on a high note, rallying to a new record close at $231.13. Robust earnings growth, coupled with a firm price trend, have propelled the home construction giant to a 33% year-to-date gain. This compares to only a 19.3% gain for the S&P 500. Momentum traders flocking to relative strength no doubt have HD stock sitting atop their respective watch lists.Friday's surge cleared a prior pivot high signaling an official breakout that should bring buyers to the yard. That said, HD is moving into overbought territory so it's not the best entry point.On the options trading front, calls outpaced puts by a wide margin. Total activity grew to 287% of the average daily volume, with 130,643 contracts traded; 86% of the trading came from call options alone.Implied volatility remains in the lower quartile of its one-year range at 21%. The rank of 25% suggests selling puts, and bull puts will only yield small pay-days. If you're inclined to chase here, bull call spreads (such as buying the Nov $230/$240) offer a better risk-reward. Snap (SNAP)Snap shares have technicians salivating after Friday's textbook rally. The past month of consolidating took on the form of a falling wedge. And after pausing for a week to build momentum, SNAP stock finally burst higher with a high volume, 4.7% gain.The jump carried SNAP above near-term resistance and its 20-day moving average and signals its next upswing has officially begun. Look for followthrough to push the stock back toward its 52-week high at $18.36.Friday's buying bonanza lit a fire under options trading with calls leading the charge in a big way. By day's end, activity climbed to 283% of the average daily volume, with 259,428 total contracts traded. Calls accounted for 86% of the session's sum.Implied volatility ticked higher on the day but remained in the basement. At 52%, it rests at the 13th percentile of its one-year range. The low reading, coupled with Snap's cheap price tag, make long calls a compelling buy here. The Oct $16 calls could work for a short-term speculative bet. Otherwise, grab the Jan $16 calls to give yourself more time. * 7 "Boring" Stocks With Exciting Prospects Amazon (AMZN)Thursday's upside breakout in the tech-heavy Nasdaq is pointing the way for Amazon. Ever since July's beatdown, AMZN stock has been stuck in a trading range or base, biding time until demand would return and its long-term uptrend would resume. But if last week's awakening in stock indexes is any indication, the time for AMZN bulls to respond is now.Indeed, the stock did see a breakout attempt on Thursday, and though the follow through has been tepid, buyers hold the upper hand. Look for a run toward its 50-day moving average at $1,875.On the options trading front, calls won the popularity contest despite Friday's down day. Activity swelled to 116% of the average daily volume, with 184,251 total contracts traded. Calls added 58% to the day's take.The past month's trading range has killed implied volatility. At 23% or only the 5th percentile of its one-year range, premiums are incredibly cheap here. Bull call spreads are a no-brainer if you're banking on higher prices.As of this writing, Tyler Craig held bullish positions in SNAP. 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 * 3 Artificial Intelligence Stocks to Buy * 7 Industrial Stocks to Buy for a Strong U.S. Economy * 3 Beaten-Down Bank Stocks to Buy and Hold for the Long Term The post Monday's Vital Data: Home Depot, Snap Inc and Amazon appeared first on InvestorPlace.
With an overwhelming majority of observers seeing an imminent rate cut on August's soft employment report, certain sectors stand to gain, while some will suffer. Take a look -
The Atlanta Falcons announced Saturday they've reached an agreement with their star wide receiver, one that makes Jones the highest-paid receiver in the NFL. The Falcons and Jones agreed to a record three-year contract extension worth $66 million. Jones’ new deal pays him $22 million on average, topping New Orleans receiver Michael Thomas, who signed a five-year contract extension ($61 million guaranteed) this summer. Jones’ previous $14 million a year deal placed him below other top receivers. Now, the six-time Pro Bowler is joined with the Falcons through the 2023 season. This offseason the Falcons said they made it a priority to reach an agreement with Jones, who has been one of the league’s best playmakers since he was drafted No. 6 overall in 2011.
Atlanta Business Chronicle’s inaugural Veterans in Business Awards honorees are scheduled to be honored on Sept. 12 at an awards event at Twelve Atlantic Station.
The Zacks Analyst Blog Highlights: Norwegian Cruise, Royal Caribbean, Lowe's, Home Depot and Owens