Management announced the acquisition of HVAC equipment wholesale distributor Mingledorff’s Inc. through its subsidiary SRS Distribution Inc., allowing the corporation to expand its presence in the B2B climate equipment market. Mingledorff’s Inc. is known for its extensive customer network and long-standing industry presence, making it a strategically important asset. The potential size of the US HVAC market is estimated at up to $100.0 billion, and this deal provides the company with direct exposure to this segment. Against this backdrop, analysts at UBS Group AG reaffirmed a “buy” rating with a target price of 450.00, significantly above the current 326.00 level. Meanwhile, experts at BNP Paribas Exane lowered their target price from 391.00 to 348.00 while maintaining a neutral rating. Analysts noted that the acquisition is not as significant as previous deals, although the proximity of the new business to The Home Depot Inc. headquarters reduces potential logistical risks.
The first-quarter financial report is scheduled for release on May 19. Revenue is expected to increase from $38.2 billion to $41.59 billion compared to $39.86 billion a year earlier, while earnings per share (EPS) are projected to rise from $2.72 to $3.41 compared to $3.45 previously. The latest dividend payment was made on March 26, when shareholders received $2.33 per share, equivalent to a quarterly yield of 2.66%, slightly above the sector average of 2.34%.
Support and Resistance Levels
On the daily chart, the instrument is correcting near the support line of a descending channel with dynamic boundaries of 383.00–300.00.
Technical indicators maintain a sell signal: fast EMAs of the Alligator indicator remain below the signal line, while the AO histogram forms corrective bars in the negative zone.
Resistance levels: 340.00, 374.00.
Support levels: 316.00, 285.00.
Trading Scenarios and The Home Depot Inc. Outlook
Short positions may be opened after the price declines and consolidates below 316.00 with a target at 285.00 and stop-loss at 330.00. Implementation period: 7 days or more.
Long positions may be opened after the price rises and consolidates above 340.00 with a target at 374.00. Stop-loss — 330.00.
Scenario
| Timeframe | Weekly |
| Recommendation | SELL STOP |
| Entry Point | 315.95 |
| Take Profit | 285.00 |
| Stop Loss | 330.00 |
| Key Levels | 285.00, 316.00, 340.00, 374.00 |
Alternative Scenario
| Recommendation | BUY STOP |
| Entry Point | 340.05 |
| Take Profit | 374.00 |
| Stop Loss | 330.00 |
| Key Levels | 285.00, 316.00, 340.00, 374.00 |
