Home Depot Stock Alpha and Beta Analysis

HD Stock  USD 371.91  1.32  0.35%   
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. Key technical indicators related to Home Depot's market risk premium analysis include:
Beta
1.08
Alpha
0.0272
Risk
0.99
Sharpe Ratio
0.12
Expected Return
0.12
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., NYSE Composite index.) So in this particular case, Home Depot did 0.03  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 1.08  . Home Depot returns are very sensitive to returns on the market. As the market goes up or down, Home Depot is expected to follow. As of March 19, 2024, Price Book Value Ratio is expected to decline to 88.25. In addition to that, Enterprise Value Multiple is expected to decline to 15.67.

Home Depot Quarterly Cash And Equivalents

2.06 Billion

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.
  
Check out Home Depot Backtesting, Home Depot Valuation, Home Depot Correlation, Home Depot Hype Analysis, Home Depot Volatility, Home Depot History and analyze Home Depot Performance.
For information on how to trade Home Stock refer to our How to Trade Home Stock guide.

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.
α0.03   β1.08

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 Wed, Dec 20, 2023 and Tue, Mar 19, 2024 is 355.11 with a coefficient of variation of 3.45. The daily time series for the period is distributed with a sample standard deviation of 12.35, arithmetic mean of 357.67, and mean deviation of 10.18. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
       Timeline  
1
These business titans are Americas top philanthropists
03/06/2024
2
EP Wealth Advisors LLC Buys 69,298 Shares of The Home Depot, Inc.
03/11/2024
3
iGas USA buys Home Depot property near Carrollwood to expand
03/12/2024
4
RELEX Advances Gen AI Capabilities to Unlock Faster, Data-driven, Actionable Insights
03/13/2024
5
Beyond Peat Bio-Fiber Sustainable Organic Soil Conditioner Now Available Nationwide at The Home Depot
03/14/2024
6
Dollar General yanks self-checkout in almost 10,000 stores in hopes the move will reduce theft
03/15/2024
7
Acquisition by Fahim Siddiqui of 2554 shares of Home Depot subject to Rule 16b-3
03/18/2024

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 financial instruments including Home or other stocks. 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.
 2011 2015 2020 2024 (projected)
Price Earnings Ratio22.0222.5923.5422.63
Short Term Coverage Ratios25.133.778.768.4

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.
20th of February 2024
Upcoming Quarterly Report
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21st of May 2024
Next Financial Report
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31st of January 2024
Next Fiscal Quarter End
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20th of February 2024
Next Fiscal Year End
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31st of October 2023
Last Quarter Report
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31st of January 2023
Last Financial Announcement
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When determining whether Home Depot is a strong investment it is important to analyze Home Depot's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Home Depot's future performance. For an informed investment choice regarding Home Stock, refer to the following important reports:
Check out Home Depot Backtesting, Home Depot Valuation, Home Depot Correlation, Home Depot Hype Analysis, Home Depot Volatility, Home Depot History and analyze Home Depot Performance.
For information on how to trade Home Stock refer to our How to Trade Home Stock guide.
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 the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

Complementary Tools for Home Stock analysis

When running Home Depot's 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 the 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...