Home Depot Stock Buy Hold or Sell Recommendation

HD
 Stock
  

USD 320.08  0.30  0.09%   

Allowing for the 90-day total investment horizon and your way above-average risk tolerance, our recommendation regarding Home Depot is 'Strong Buy'. Macroaxis provides Home Depot buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding HD positions. The advice algorithm takes into account all of Home Depot's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Home Depot's buy-and-hold perspective. Please check Home Depot Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Home Depot and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Home Depot.

Execute Home Depot Buy or Sell Advice

The Home Depot recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Home Depot. Macroaxis does not own or have any residual interests in Home Depot or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Home Depot's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Home DepotBuy Home Depot
Strong Buy

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

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Analyst Consensus

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Financial Strenth (F Score)

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Financial Leverage

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Reporting Quality (M-Score)

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For the selected time horizon Home Depot has a Risk Adjusted Performance of 0.1155, Jensen Alpha of 0.0702, Total Risk Alpha of 0.05, Sortino Ratio of 0.0412 and Treynor Ratio of 0.1308
Macroaxis provides investment recommendation on Home Depot to complement and cross-verify current analyst consensus on Home Depot. Our trade recommendations engine determines the entity's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Home Depot is not overpriced, please check out all Home Depot fundamentals, including its number of shares shorted, ebitda, book value per share, as well as the relationship between the price to sales and cash per share . Given that Home Depot has a price to earning of 19.67 X, we strongly advise you to confirm Home Depot market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your regular risk tolerance and investing horizon.

Home Depot Trading Alerts and Improvement Suggestions

Home Depot Returns Distribution Density

The distribution of Home Depot's historical returns is an attempt to chart the uncertainty of Home Depot's future price movements. The chart of the probability distribution of Home Depot stock daily returns describes the distribution of returns around its average expected value. We use Home Depot price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Home Depot returns is essential to provide solid investment advice for Home Depot.
Mean Return0.16Value At Risk-2.5
Potential Upside2.81Standard Deviation2.19
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Home Depot historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Home Depot Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Home Depot or Specialty Retail sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Home Depot's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Home Depot stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.07
β
Beta against NYSE Composite1.18
σ
Overall volatility
2.20
Ir
Information ratio 0.038

Home Depot Volatility Alert

Home Depot currently demonstrates below-average downside deviation. It has Information Ratio of 0.04 and Jensen Alpha of 0.07. However, we advise investors to further question Home Depot expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Home Depot's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Home Depot's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Home Depot Implied Volatility

Home Depot's implied volatility exposes the market's sentiment of Home Depot stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Home Depot's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Home Depot stock will not fluctuate a lot when Home Depot's options are near their expiration.

Home Depot Fundamentals Vs Peers

Comparing Home Depot's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Home Depot's direct or indirect competition across all of the common fundamentals between Home Depot and the related equities. This way, we can detect undervalued stocks with similar characteristics as Home Depot or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Home Depot's fundamental indicators could also be used in its relative valuation, which is a method of valuing Home Depot by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Home Depot to competition
FundamentalsHome DepotPeer Average
Return On Equity0.15 %(0.31) %
Return On Asset0.20 %(0.14) %
Profit Margin0.11 %(1.27) %
Operating Margin0.15 %(5.51) %
Current Valuation381.53 B16.62 B
Shares Outstanding1.02 B571.82 M
Shares Owned by Insiders0.08 %10.09 %
Shares Owned by Institutions71.00 %39.21 %
Number of Shares Shorted9.86 M4.71 M
Price to Earning19.67 X28.72 X
Price to Book257.54 X9.51 X
Price to Sales2.07 X11.42 X
Revenue151.16 B9.43 B
Gross Profit50.83 B27.38 B
EBITDA25.95 B3.9 B
Net Income16.43 B570.98 M
Cash and Equivalents2.34 B2.7 B
Cash per Share2.42 X5.01 X
Total Debt36.6 B5.32 B
Current Ratio1.39 X2.16 X
Book Value Per Share1.27 X1.93 K
Cash Flow from Operations16.57 B971.22 M
Short Ratio2.35 X4.00 X
Earnings Per Share16.59 X3.12 X
Price to Earnings To Growth1.69 X4.89 X
Target Price342.39
Number of Employees500 K18.84 K
Beta0.96-0.15
Market Capitalization326.22 B19.03 B
Total Asset71.88 B29.47 B
Retained Earnings43.53 B9.33 B
Working Capital3.96 B1.48 B
Current Asset16.48 B9.34 B
   Sale by Siddiqui Fahim of 1000 shares of Home Depot [view details]

Home Depot Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Home Depot . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Home Depot Buy or Sell Advice

When is the right time to buy or sell Home Depot? Buying financial instruments such as Home Depot Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2010 2015 2020 2022 (projected)
Receivables1.48 B2.11 B3.43 B3.38 B
Inventories11.08 B14.53 B22.07 B20.37 B

Use Investing Ideas to Build Portfolios

In addition to having Home Depot in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Military Industrial Thematic Idea Now

Military Industrial
Military Industrial Theme
A collection of large United States defense contractors including companies involved in production or distribution of aircraft, ships, vehicles, weaponry, and electronic systems in cooperation with the government. The Military Industrial theme has 46 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Military Industrial Theme or any other thematic opportunities.
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Please check Home Depot Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Home Depot information on this page should be used as a complementary analysis to other Home Depot's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

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Is Home Depot's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Home Depot. If investors know Home Depot will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Home Depot listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.082
Market Capitalization
326.2 B
Quarterly Revenue Growth YOY
0.056
Return On Assets
0.2
Return On Equity
0.15
The market value of Home Depot is measured differently than its book value, which is the value of Home Depot that is recorded on the company's balance sheet. Investors also form their own opinion of Home Depot's value that differs from its market value or its book value, called intrinsic value, which is Home Depot's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Home Depot's market value can be influenced by many factors that don't directly affect Home Depot's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Home Depot's value and its price as these two are different measures arrived at by different means. Investors typically determine Home Depot value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Home Depot's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.