Home Depot Stock Alpha and Beta Analysis

HD
 Stock
  

USD 279.08  4.81  1.75%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Home Depot. It also helps investors analyze the systematic and unsystematic risks associated with investing in Home Depot over a specified time horizon. Remember, high Home Depot's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Please check Home Depot Backtesting, Home Depot Valuation, Home Depot Correlation, Home Depot Hype Analysis, Home Depot Volatility, Home Depot History and analyze Home Depot Performance.
  
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Please note that although Home Depot alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., DOW index.) So in this particular case, Home Depot did 0.047643  better than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Home Depot stock's relative risk over its benchmark. Home Depot has a beta of 1.16  . 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.
Home Depot Enterprise Value over EBIT is projected to slightly grow based on the last few years of reporting. The past year's Enterprise Value over EBIT was at 18.00. The current year Enterprise Value over EBITDA is expected to grow to 16.64, whereas Price to Book Value is projected to grow to (72.26) .
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.

Home Depot Quarterly Book Value per Share

(1.659)

Share

Home Depot Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Home Depot market risk premium is the additional return an investor will receive from holding Home Depot long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Home Depot. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Home Depot's performance over market.
α0.047643   β1.16
90 days against DJI

Home Depot expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Home Depot's Buy-and-hold return. Our buy-and-hold chart shows how Home Depot performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Home Depot Market Price Analysis

Market price analysis indicators help investors to evaluate how Home Depot stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Home Depot shares will generate the highest return on investment. By understating and applying Home Depot stock market price indicators, traders can identify Home Depot position entry and exit signals to maximize returns.

Home Depot Return and Market Media

The median price of Home Depot for the period between Sun, Apr 3, 2022 and Sat, Jul 2, 2022 is 298.08 with a coefficient of variation of 4.16. The daily time series for the period is distributed with a sample standard deviation of 12.24, arithmetic mean of 294.34, and mean deviation of 10.29. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
      Timeline 
1
Financial Statements04/19/2022
2
Home Depot Outpaces Stock Market Gains What You Should Know ...04/27/2022
3
Home Depot exotic insider transaction detected05/04/2022
4
Home Depot Lowes Do-It-Yourself Profits - Forbes05/12/2022
5
Should you purchase Home Depot based on latest technical ind...05/17/2022
6
Acquisition by Siddiqui Fahim of 3697 shares of Home Depot s...05/19/2022
7
Exercise or conversion by Hector Padilla of 136 shares of Ho...05/20/2022
8
Acquisition by Siddiqui Fahim of 3697 shares of Home Depot s...05/23/2022
9
Payment of 258 shares by Richard McPhail of Home Depot subje...05/24/2022
10
Exercise or conversion by Campbell Ann Marie of 8225 shares ...05/25/2022
11
Acquisition by Ari Bousbib of 799 shares of Home Depot subje...06/02/2022
12
Walmart, Amazon, Home Depot Stock Slump As Target Signals Bi...06/07/2022
13
First American Trust FSB Sells 188 Shares of The Home Depot,...06/24/2022
14
EPS Estimate06/29/2022
15
Dow jumps 118 points on gains for shares of Boeing, Home Dep...07/01/2022

About Home Depot Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all equity instruments such as Ford or other stocks, funds, and ETFs. Alpha measures the amount that position in Home Depot has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2015 2022 (projected)
Long Term Debt to Equity16.6910.54
Interest Coverage14.0516.71

Home Depot Upcoming Company Events

As portrayed in its financial statements, the presentation of Home Depot's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Home Depot's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Home Depot's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Home Depot. Please utilize our Beneish M Score to check the likelihood of Home Depot's management manipulating its earnings.
Upcoming Quarterly Report22nd of February 2022
Next Financial Report17th of May 2022
Next Fiscal Quarter End31st of January 2022
Next Fiscal Year End22nd of February 2022
Last Quarter Report31st of October 2021
Last Financial Announcement31st of January 2021

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Please check Home Depot Backtesting, Home Depot Valuation, Home Depot Correlation, Home Depot Hype Analysis, Home Depot Volatility, Home Depot History and analyze Home Depot Performance. 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

Complementary Tools for Home Depot Stock analysis

When running Home Depot price analysis, check to measure Home Depot's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Home Depot is operating at the current time. Most of Home Depot's value examination focuses on studying past and present price action to predict the probability of Home Depot's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Home Depot's price. Additionally, you may evaluate how the addition of Home Depot to your portfolios can decrease your overall portfolio volatility.
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Home Depot technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Home Depot technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Home Depot trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...