Home Depot, Inc. (NYSE: HD) shares rose in value on Tuesday January 17 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, in early trade, the Dow Jones Industrial Average was 47 points lower, or 0.24% to 19838, the S&P 500 fell 7 points, or 0.29% to 2267, while the Nasdaq was down 19 points, or 0.35% to 5554.
Analysts at Zacks Investment Research upgraded shares of Home Depot, Inc. (NYSE: HD) from Hold to Buy today. Zacks Investment Research currently has a rating of Buy on the shares. The one-year price target of $147.88 is higher than the opening price of $135.09, causing a number of other analysts to issue statements on the company recently. Looking back over the last 52 weeks, Home Depot, Inc. stock has a high of $139.00. Stock prices sometimes get a spike to the upside when analysts upgrade a stock.
Shares of Home Depot, Inc. (NYSE: HD) opened at $135.09 yesterday trading between $134.76 and $136.26, and last traded at $136.19, an increase of $1.15 from the previous closing price.
Home Depot, Inc. (NYSE: HD) now has a market cap of 165.90B.
Home Depot, Inc. (NYSE: HD) Average Daily Trading Volume
The stock’s average daily volume is 5,187,240 shares out of a total float 1,216,845,000 and some 968,300 shares crossed the trading desk yesterday, 44 percent lower than the norm. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Home Depot, Inc. (NYSE: HD) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
Trades for Home Depot, Inc. (NYSE: HD) have ranged from $109.62 – 139.00, and the stock now has a 50-day MA of $133.77 and 200-day MA of $131.26. Today’s last price is 2.02%% under the 52 week high of $139.00.
Earnings growth is an important factor to consider when investing in stocks and investors identify companies that have grown their earnings at least 25% or more over a 3 year period.
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