Home Depot Stock Performance

HD
 Stock
  

USD 322.50  5.05  1.59%   

Home Depot has a performance score of 4 on a scale of 0 to 100. The company retains a Market Volatility (i.e., Beta) of 1.1792, which attests to a somewhat significant risk relative to the market. Let's try to break down what Home Depot's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Home Depot will likely underperform. Although it is important to respect Home Depot current price history, it is better to be realistic regarding the information on the equity's current price movements. The philosophy towards determining future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By evaluating Home Depot technical indicators, you can presently evaluate if the expected return of 0.14% will be sustainable into the future. Home Depot right now retains a risk of 2.22%. Please check out Home Depot downside variance, daily balance of power, and the relationship between the maximum drawdown and skewness to decide if Home Depot will be following its current trending patterns.
  
Home Depot Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Home Depot are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Home Depot may actually be approaching a critical reversion point that can send shares even higher in January 2023. ...more

Structure and Payout Changes

Forward Dividend Yield
0.0239
Payout Ratio
0.4581
Last Split Factor
3:2
Forward Dividend Rate
7.6
Dividend Date
2022-12-15
Ex Dividend Date
2022-11-30

Home Depot Price Channel

Begin Period Cash Flow7895000000.00
Total Cashflows From Investing Activities-2969000000.00

Home Depot Relative Risk vs. Return Landscape

If you would invest  29,797  in Home Depot on September 9, 2022 and sell it today you would earn a total of  2,218  from holding Home Depot or generate 7.44% return on investment over 90 days. Home Depot is generating 0.138% of daily returns and assumes 2.2179% volatility on return distribution over the 90 days horizon. Put differently, 19% of stocks are less risky than Home Depot on the basis of their historical return distribution, and some 98% of all equities are expected to be superior in generating returns on investments over the next 90 days.
  Daily Expected Return (%)  
       Risk (%)  
Allowing for the 90-day total investment horizon Home Depot is expected to generate 1.47 times more return on investment than the market. However, the company is 1.47 times more volatile than its market benchmark. It trades about 0.06 of its potential returns per unit of risk. The NYSE Composite is currently generating roughly 0.02 per unit of risk.

Home Depot Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Home Depot's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Home Depot, and traders can use it to determine the average amount a Home Depot's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.0622

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Estimated Market Risk
 2.22
  actual daily
 
 19 %
of total potential
 
1919
Expected Return
 0.14
  actual daily
 
 2 %
of total potential
 
22
Risk-Adjusted Return
 0.06
  actual daily
 
 4 %
of total potential
 
44
Based on monthly moving average Home Depot is performing at about 4% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Home Depot by adding it to a well-diversified portfolio.

About Home Depot Performance

To evaluate Home Depot Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Home Depot generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Home Depot Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Home Depot market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents Home Depot's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2022
Effect of Exchange Rate Changes on Cash-34 M22.1 M
Return on Investment 58.38  58.65 
Return on Average Assets 23.07  23.26 
Return on Average Equity2.1 K8.5 K
Return on Invested Capital 0.30  0.30 
Return on Sales 0.15  0.15 

Things to note about Home Depot

Checking the ongoing alerts about Home Depot for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Home Depot help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

Home Depot Alerts

Equity Alerts and Improvement Suggestions

Please check Risk vs Return Analysis. 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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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
326.3 B
Quarterly Revenue Growth YOY
0.056
Return On Assets
0.2033
Return On Equity
0.1465
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.