Home Depot Stock Target Price and Analyst Consensus

HD -  USA Stock  

USD 308.46  5.65  1.87%

The current analyst and expert consensus on Home Depot is Buy with 6 hold recommendations. The current projected Home Depot target price consensus is 409.58 with 19 analyst opinions. One of the most common ways Home Depot analysts use to provide buy-or-sell recommendation to the public are conference calls analysis and financial statements evaluations. Some experts can also talk to Home Depot vendors, executives, and/or customers. Home Depot recommendation module provides expert sentiment on the projected Home Depot target price to derive its highest and lowest estimates based on target price standard deviation of 41.433. Please check Macroaxis Advice on Home Depot to cross-verify analyst projections. Unlike analyst recommendations, Macroaxis provides advice only from the perspective of investor risk tolerance and investment horizon.
  
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The current year Profit Margin is expected to grow to 0.11, whereas Gross Profit is forecasted to decline to about 50.4 B. As of May 27, 2022, Inventories is expected to decline to about 13 B. In addition to that, Receivables is expected to decline to about 2.1 B

Home Depot Target Price Consensus

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Home Depot target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Home Depot target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Number of Opinions21
Lowered Outlook0
Raized Outlook0
Buy
Most Home Depot analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to helps potential investors understand Home Depot stock's fair price compared to its market value. Analysts arrive at stock ratings after researching public financial statements of Home Depot, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice   Exposure   Valuation

Home Depot Target Price Projection

Home Depot's current and average target prices are 308.46 and 409.58, respectively. The current price of Home Depot is the price at which Home Depot is currently trading. On the other hand, Home Depot's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

Home Depot Market Quote on 27th of May 2022

Low Price301.6Odds
High Price308.5Odds

308.46

Target Price

Analyst Consensus On Home Depot Target Price

Low Estimate315.0Odds
High Estimate470.0Odds
Number of Analysts19
Standard Deviation41.433

409.578

Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on Home Depot and the information provided on this page.

Home Depot Analyst Ratings

Home Depot's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Home Depot stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Home Depot's financials, market performance, and future outlook by experienced professionals. Home Depot's historical ratings below, therefore, can serve as a valuable tool for investors.

Average Consensus Estimates

About Home Depot Target Price Projections

Home Depot's target price is an analyst's projection of its future price. Price targets can be assigned to all types of securities, from complex investment products to stocks such as Home Depot and even bonds. If the target price is unavailable, it is most likely because there were not enough analyst opinions to come up with a consensus estimate. When setting a price target estimate, an analyst is trying to determine what the Stock is worth and where the price will be in a year from now. Generally, the target price of Home Depot depends on its intrinsic valuation, beta (i.e., risk over market), and overall volatility. Most analysts publish their price targets in research reports on specific companies, along with their buy, hold, or sell recommendations. Stock price targets are often quoted in the financial news media. Macroaxis uses multiple feeds to provide overall target price projection for Home Depot including analysis of its current option contracts.
Home Depot's latest option contracts expiring on 2022-05-27 are carrying combined implied volatility of 43.9 with a put-to-call open interest ratio of 0.85 over 130 outstanding agreements suggesting investors are buying slightly more calls than puts on contracts expiring on 2022-05-27. The current put volume is at 3254, with calls trading at the volume of 4251. This yields a 0.77 put-to-call volume ratio. The Home Depot option chain provides detailed quote and price information for the current Home Depot option contracts. It shows all of Home Depot's listed puts, calls, expiration dates, strike prices, and other pricing information.

Open Interest Against 2022-05-27 Option Contracts

Home Depot option prices can potentially be used to forecast stock returns because most option chains provide information not only about the current prices but also about the future conditions in Home Depot's lending market. For example, when Home Depot's puts are not actively trading or completely missing in the marketplace, investors can use it to internalize expected shorting costs. So if an investor is writing a put option on Home Depot, he or she must hedge the risk by shorting Home Depot stock over its option's life.
The chart above shows Home Depot's distribution of open interest by maturity on contracts that have not yet been settled. The area between the two highest points is the projection of the price at expiration. Home Depot's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Home Depot's option, there is no secondary market available for investors to trade.

Home Depot Maximum Pain Price across 2022-05-27 Option Contracts

Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of particular securities such as Home Depot close to expiration to expire worthless. According to most research, approximately 10% to 15% of all stock options are exercised, while about 35% expire worthlessly, with roughly 50% traded out before the expiration date. So, Max pain occurs when market makers reach a net positive position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthless.
Home Depot's stock options are financial instruments that give investors the right to buy or sell shares of Home Depot common stock at a specified price for a given time period. Generally speaking, an option to purchase or sell Home Depot stock makes it part of the underlying stock when the option's price is tied to the movement of the underlying stock. If Home Depot's stock price goes up or down, the stock options follow.
Please check Macroaxis Advice on Home Depot to cross-verify analyst projections. Unlike analyst recommendations, Macroaxis provides advice only from the perspective of investor risk tolerance and investment horizon.

Home Depot In The Money Call Balance

When Home Depot's strike price is surpassing the current stock price, the option contract against Home Depot stock is said to be in the money. When it comes to buying Home Depot's options that are 'In the Money' or 'Out of the Money', the choice depends on your outlook for the underlying security, financial situation, and what you are trying to achieve.
While 'out-of-the-money' options written on Home Depot are typically viewed as the more aggressive, there are potential upsides to purchasing these types of options contracts. For one, the cost to buy an 'Out of the Money' option is lower than the cost to buy an 'In the Money' option. This cost-benefit is due to the fact that at the time of the purchase, 'Out of the Money' contracts have no intrinsic value. So, while the potential for a 100% loss is more significant, the cost and risk to enter the trade are lower.

Home Depot Current Options Market Mood

Home Depot's open interest and total value indicators provide investors with the necessary information to digest the overall options buildup for its expiring contracts. In addition, it helps Home Depot Stock's traders understand whether a recent fall or rise in the market is unreasonable and if the time has come to take contrarian positions. These ratios are calculated based on options trading volumes and current open interest.

Put-to-Call Open Interest

Put-to-Call Volume

Most options investors, including buyers and sellers of Home Depot's calls and puts, are not very successful. It is estimated that an average options trader loses somewhere between 80% to 90% of the time. Home Depot's option open interest and volume spread between outstanding puts and calls are regarded by many investors as reliable indicators of the overall future market direction. Using current Home Depot's option volume and open interest to make an investment decision is considered a contrarian-sentiment measure that can be utilized in many timing strategies in both derivative and spot marketplace.

Additional Home Depot Value Projection Modules

Most investment researchers agree that the mispricing and readjustment of any Stock value happens often and is sometimes even predictable, but there is no strong theory explaining why it happens. The current price of Home Depot is a key component of Home Depot valuation and have some predictive power on the future returns of a Home Depot.
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.
Hype
Prediction
LowEstimated ValueHigh
284.75286.92289.09
Details
Intrinsic
Valuation
LowReal ValueHigh
258.47339.77341.94
Details
Naive
Forecast
LowNext ValueHigh
296.71298.89301.06
Details
Earnings
Estimates (13)
LowProjected EPSHigh
15.0015.4715.89
Details
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.

Additional Home Depot Value Projection Modules

Most investment researchers agree that the mispricing and readjustment of any Stock value happens often and is sometimes even predictable, but there is no strong theory explaining why it happens. The current price of Home Depot is a key component of Home Depot valuation and have some predictive power on the future returns of a Home Depot.
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.
Hype
Prediction
LowEstimated ValueHigh
284.75286.92289.09
Details
Intrinsic
Valuation
LowReal ValueHigh
258.47339.77341.94
Details
Naive
Forecast
LowNext ValueHigh
296.71298.89301.06
Details
Earnings
Estimates (13)
LowProjected EPSHigh
15.0015.4715.89
Details
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.

Currently Trending Themes

If you are a self-driven investor, you will appreciate our idea-generating investing themes. Our themes help you align your investments inspirations with your core values and are essential building blocks of your portfolios. A typical investing theme is an unweighted collection of up to 20 funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of equities with common characteristics such as industry and growth potential, volatility, or market segment.
Macroaxis Index
Invested over 90 shares
Software
Invested few shares
Please check Macroaxis Advice on Home Depot to cross-verify analyst projections. Unlike analyst recommendations, Macroaxis provides advice only from the perspective of investor risk tolerance and investment horizon. 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

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The data published in Home Depot's official financial statements usually reflect Home Depot's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Home Depot. For example, before you start analyzing numbers published by Home Depot accountants, it's critical to develop an understanding of what Home Depot's liquidity, profitability, and earnings quality are in the context of the Consumer Cyclical space in which it operates.
Please note, the presentation of Home Depot's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Home Depot's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Home Depot's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Home Depot. Please utilize our Beneish M Score to check the likelihood of Home Depot's management to manipulate its earnings.