Earnings Miss Knocks HD From Record Highs

The blue-chip company posted earnings that missed estimates, though its revenue exceeded expectations

Home Depot Inc (NYSE:HD) stock is sinking lower this morning after the home improvement retailer posted first-quarter earnings that missed analysts' estimates, after the company spent over $850 million on benefits for employees to ensure its stores and warehouses, deemed essential, were kept running during the coronavirus lockdown. While Home Depot's revenue did beat analysts' estimates, the security is down 1.7% to trade at $241.25.

This comes just one day after HD hit an all-time high of $248.32, which just barely eclipsed its late February peak. The stock has added over 71% since its March 18, three-year low of $140.63, with several pullback captured by the 10-day moving average -- a trendline the security is still trading north of this morning.

Mum's the word among the brokerage bunch this morning, though most analysts are currently leaning bullish. Of the 21 in coverage 13 say "buy" or better, while eight say "hold." The consensus 12-month price target of $235.38, meanwhile, is a 2.3% discount to last night's close.

Elsewhere, options players are also slightly more optimistic. In the last 10 days, 1.87 calls have been bought for every put at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than 70% of all other readings from the past year, meaning options players have had a slighter bigger-than-usual appetite for long calls of late.