The Home Depot, Inc. (NYSE:HD) lost 15.12% YTD. For the wide-moat consumer cyclical stock, the shedding in price from $408 to $346 YTD is primarily due to economic cycles. High rates of inflation continue to impact negatively on the home improvements retailer. Home Depot will announce Q4 and annual results for the year ended Jan 30 through a conference call on 22nd February 2022.
The expectation is of weak revenue growth rates in the mid-single-digit range. The release of annual results will be the last for the outgoing CEO Craig Menear who hands over to Ted Decker on March 1. Ted has worked with HD for twenty years with the last role as the COO.
The appointment was received with a lot of scepticism. Ted’s appointment may not result in significant strategic change at Home Depot. In tomorrow’s conference call, therefore, the key focus will be on the strategic initiatives that the company will be pursuing going forward.
HD trended support at $346 and resistance at $380
Source – TradingView
Technical analysis indicates that HD is currently trading at the trended support level of $346. Trended resistance remains at $180. Whether or not the price will break below the trended support depends on the market reception of any strategic initiatives that the market announces tomorrow.
If Q4 and annual results released tomorrow do not meet expectations, the share price is likely to collapse to find new support at $266. However, if the results inspire the market, the share price would maintain its current momentum to stabilize at the potential resistance of $380.
Summary
Home Depot will announce Q4 and fiscal year results tomorrow. The share price has lost 15.12% since the beginning of the year. As Ted Decker takes over as the CEO, the strategic initiatives will determine whether the share maintains momentum or crashes.
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