Home Depot, Inc. (‘HD’)Home Depot, Inc. (symbol ‘HD’) share price has made some profits in the second quarter by just over 10%. The company’s earnings report for the fiscal quarter ending July 2023 is set to be released on Tuesday 15th of August, before market open. The consensus EPS is $4.46 compared to the same quarter of last year at $5.05.
‘The company is currently performing exceptionally well compared to the start of the quarter but there are some financial issues to be paying attention to. Even though the home improvement giant has a current ratio of 1.27 , the debt to equity ratio as of 30/04/2023 is at 113.03 indicating that the company is operating at a great level of debt which is something that might discourage investors to direct their funds towards the company.’ said Antreas Themistokleous at Exness.
From the technical analysis perspective the price is trading in an aggressive bullish rally for the last 2 months with some signs of possible correction in the near short term. The first indication is the extreme overbought Stochastic oscillator which is in this level for an extended period of time and more specifically around 3+ weeks. The second indication is that in the recent sessions the price moved away from the Bollinger bands after consecutive touches of the upper band which usually but not always a correction follows.
If this scenario is confirmed in the following we might see some support around the $320 price area which consists of a reaction area since mid February as well as the psychological support of the round number. On the other hand if the bulls prove to be stronger than the bears then we might see the price retesting the previous highs around the $340 level.
