Should you purchase Home Depot (NYSE:HD) based on latest technical indicators?


USD 270.94  1.80  0.67%   

Whilst many millenniums are getting more into consumer cyclical space, it makes sense to digest Home Depot against current trends within the economy. As expected, Home Depot is starting to reaffirm its true potential as shareholders are becoming more and more confident in the future outlook. A lot of the trends of the company stock price movements has been a demonstration of what is happening in the market overall. Sound fundamental indicators of the firm may also indicate signals of longer-term gains for Home Depot shareholders. Home Depot is scheduled to announce its earnings today.
Published over three months ago
View all stories for Home Depot | View All Stories
Home Depot's average rating is Buy from 21 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Home Depot market sentiment investors' perception of the future value of Home Depot. Let us look at a few aspects of Home Depot technical analysis.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Home Depot. In general, we focus on analyzing Home Depot stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Home Depot's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Home Depot's intrinsic value. In addition to deriving basic predictive indicators for Home Depot, we also check how macroeconomic factors affect Home Depot price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Home Depot's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Home Depot in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Home Depot. Your research has to be compared to or analyzed against Home Depot's peers to derive any actionable benefits. When done correctly, Home Depot's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Home Depot.

How important is Home Depot's Liquidity

Home Depot financial leverage refers to using borrowed capital as a funding source to finance Home Depot ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Home Depot financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Home Depot's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Home Depot, but it might be worth checking our own buy vs. sell analysis

Is Home Depot valued correctly by the market?

The entity has a beta of 1.158. Let's try to break down what Home Depot's beta means in this case. Home Depot returns are very sensitive to returns on the market. As the market goes up or down, Home Depot is expected to follow. The beta indicator helps investors understand whether Home Depot moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Home Depot deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The firm generated the yearly revenue of 147.7 B. Reported Net Income was 15.94 B with gross profit of 44.85 B.

Over 3 percent surge for Home Depot. What does it mean for shareholders?

Latest skewness is at -1.03. Home Depot exhibits very low volatility with skewness of -1.03 and kurtosis of 2.43. However, we advise investors to further study Home Depot technical indicators to make sure all market info is available and is reliable. 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 bullying 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.

Our Final Take On Home Depot

Although some firms in the home improvement retail industry are either recovering or due for a correction, Home Depot may not be as strong as the others in terms of longer-term growth potentials. While some shareholders may not share our view, we believe it may be a good time to increase your existing holdings in Home Depot. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Home Depot.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Home Depot. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to