Home Depot Shares Tap Two-Year Low Before Q1 Earnings With 6.8% Move Expected
Home Depot shares dropped 3.4% to trade near $300, marking a five-day slide and two-year low at $299.27, extending a 12% year-to-date decline ahead of Q1 earnings on May 19. Options traders anticipate a 6.8% post-earnings move, with the 50-day call/put ratio at 2.56, above 93% of readings.
1. Shares Hit Two-Year Low
Home Depot’s stock fell 3.4% to $300.05, earlier touching a two-year low of $299.27, marking the fifth consecutive daily decline and extending a 12% drop year-to-date.
2. Pre-Earnings Volatility Priced In
Investors are bracing for the Q1 earnings report scheduled for May 19, with options pricing in a 6.8% post-earnings swing compared to an average 2.2% move following the last eight reports.
3. Bullish Options and Analyst Ratings
The 50-day call/put volume ratio surged to 2.56, ranking above 93% of readings over the past year, while 22 of 34 brokerages maintain buy or strong buy ratings, leaving room for a sentiment shift if optimism wanes.