Home Depot Surges on Upbeat Quarterly Report

HD calls have been preferred over puts in recent weeks

by Jake Scott

Published on Feb 25, 2020 at 10:58 AM

Shares of retailer Home Depot Inc (NYSE:HD) are up 1.8% this morning, last seen at $244.34, following the company's upbeat quarterly report. The Lowe's (LOW) rival reported earnings of $2.28 per share for the fourth quarter, higher than the anticipated $2.10 per share. The home improvement giant also reported better-than-expected sales of $25.78 billion. Further, based on current information, the company said it will be difficult to tell whether future earnings will be impacted by the coronavirus outbreak.

After recording a record high of $247.36 just last week, shares of HD are continuing to expand on their rebound, with the exception of yesterday's broad-market setback. In fact, year-over-year the equity remains up 28%.

In the options pits, data at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows HD with a 50-day call/put volume ratio of 2.48. This a ratio sits higher than 96% of readings from the past year, and means that more than two calls have been picked up for every put in the last 50 days of trading.

Analyst coverage for Home Depot looked optimistic heading into today. Specifically, 11 of the 19 covering firms sport a "buy" or "strong buy" position, while eight recommend a "hold," with not a single "sell" is in sight.

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