Is Now the Time to Add Home Depot to Your Portfolio?

As Home Depot (NYSE: HD) prepares to release its quarterly earnings tomorrow, November 12, 2024, before the market opens, investors are asking: Is now the time to add Home Depot to their portfolio?

Recent Performance and Stock Surge

Home Depot recently hit an all-time high on October 15th and has climbed 22% since its lows in May. This strong upward momentum reflects confidence in both the company's performance and its position within the home improvement retail sector, making it a compelling stock to watch.

Earnings Preview and Market Expectations

Analysts will closely examine the upcoming earnings report, looking for insights into Home Depot’s growth trajectory and its ability to maintain or even exceed its recent performance. As consumer spending shifts, Home Depot's approach to navigating market challenges, including inflation and supply chain concerns, will be a key focus. Positive earnings could further boost investor confidence, while any surprises—positive or negative—could lead to significant market reactions.

Dividend Stability and Growth

Home Depot has a solid track record when it comes to dividends, paying a reliable quarterly dividend currently yielding 2.22%. Since 1987, the company has consistently rewarded its shareholders, and for the past 15 years, it has increased its dividend—a strong signal of financial health and a shareholder-focused strategy. For income-focused investors, this history of stable and growing dividends adds an appealing element to the stock.

Is Home Depot Right for Your Portfolio?

Adding Home Depot to your portfolio may be an attractive option for long-term investors looking for a blend of growth potential and income stability. With strong recent performance, a track record of earnings growth, and a robust dividend, Home Depot presents a solid investment case. However, as with any investment, it's essential to consider your financial goals, risk tolerance, and the potential impact of upcoming earnings.

In summary, Home Depot’s performance has been impressive, and its dividend history is appealing. As earnings day approaches, now may indeed be a good time to evaluate whether this stock aligns with your portfolio strategy.

Trading Considerations:

Sell the 425/430 Vertical Call Spread

Or

Sell the 355/350 Vertical Put Spread

For those wanting to own HD sell Cash Secured Puts at 380 or below

The trading opportunities mentioned are informational and not intended as personal financial advice, conduct your own due diligence, all trades involve risk, there is no guarantee of ROI, a potential loss of capital exists with any trade.