Home Depot Stock Buy Hold or Sell Recommendation

HD Stock  USD 344.21  1.48  0.43%   
Allowing for the 90-day total investment horizon and your typical level of risk aversion, our recommendation regarding Home Depot is 'Strong Hold'. Macroaxis provides Home Depot buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding HD positions. The advice algorithm takes into account all of Home Depot's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Home Depot's buy or sell advice are summarized below:
Real Value
337.71
Target Price
321.54
Hype Value
344.15
Market Value
344.21
Naive Value
339.96
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Home Depot given historical horizon and risk tolerance towards Home Depot. When Macroaxis issues a 'buy' or 'sell' recommendation for Home Depot, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Home Depot Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For information on how to trade Home Stock refer to our How to Trade Home Stock guide.
In addition, we conduct extensive research on individual companies such as Home and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Home Depot. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in unemployment.

Execute Home Depot Buy or Sell Advice

The Home recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Home Depot. Macroaxis does not own or have any residual interests in Home Depot or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Home Depot's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Home DepotBuy Home Depot
Strong Hold

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Responds to the marketDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

PoorDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Possible ManipulatorDetails
For the selected time horizon Home Depot has a Risk Adjusted Performance of (0.02), Jensen Alpha of (0.19), Total Risk Alpha of (0.25) and Treynor Ratio of (0.04)
Macroaxis provides investment recommendation on Home Depot to complement and cross-verify current analyst consensus on Home Depot. Our trade recommendations engine determines the entity's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Home Depot is not overpriced, please check out all Home Depot fundamentals, including its ebitda, book value per share, and the relationship between the price to sales and cash per share . Given that Home Depot has a price to earning of 19.67 X, we strongly advise you to confirm Home Depot market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your regular risk tolerance and investing horizon.

Home Depot Trading Alerts and Improvement Suggestions

Home Depot generated a negative expected return over the last 90 days
Home Depot has a poor financial position based on the latest SEC disclosures
About 73.0% of the company shares are owned by institutional investors
On 21st of March 2024 Home Depot paid $ 2.25 per share dividend to its current shareholders
Latest headline from pymnts.com: This Week in B2B Innovation Globalization, Digitization and Better Payments

Home Depot Returns Distribution Density

The distribution of Home Depot's historical returns is an attempt to chart the uncertainty of Home Depot's future price movements. The chart of the probability distribution of Home Depot daily returns describes the distribution of returns around its average expected value. We use Home Depot price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Home Depot returns is essential to provide solid investment advice for Home Depot.
Mean Return
-0.04
Value At Risk
-1.73
Potential Upside
2.18
Standard Deviation
1.26
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Home Depot historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Home Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Home Depot is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Home Depot backward and forwards among themselves. Home Depot's institutional investor refers to the entity that pools money to purchase Home Depot's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Northern Trust Corp2023-12-31
11.8 M
Wellington Management Company Llp2023-12-31
10.3 M
Royal Bank Of Canada2023-12-31
9.8 M
Bank Of New York Mellon Corp2023-12-31
9.2 M
Jpmorgan Chase & Co2023-12-31
8.8 M
Fisher Asset Management, Llc2023-12-31
8.8 M
Legal & General Group Plc2023-12-31
8.5 M
Fmr Inc2023-12-31
8.2 M
T. Rowe Price Associates, Inc.2023-12-31
6.5 M
Vanguard Group Inc2023-12-31
94.5 M
Blackrock Inc2023-12-31
71.1 M
Note, although Home Depot's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Home Depot Cash Flow Accounts

201920202021202220232024 (projected)
Change To Inventory(593M)(1.7B)(5.4B)(2.8B)4.1B4.3B
Change In Cash355M5.8B(5.6B)414M1.0B1.1B
Free Cash Flow11.0B16.4B14.0B11.5B17.9B18.8B
Depreciation2.3B2.5B2.9B3.0B3.2B3.4B
Other Non Cash Items184M121M196M271M4.0B4.2B
Dividends Paid6.0B6.5B7.0B7.8B8.4B8.8B
Capital Expenditures2.7B2.5B2.6B3.1B3.2B2.3B
Net Income11.2B12.9B16.4B17.1B15.1B15.9B
End Period Cash Flow2.1B7.9B2.3B2.8B3.8B3.9B
Change To Netincome453M431M595M504M579.6M299.9M
Investments(2.7B)(10.2B)(3.0B)(3.1B)(4.7B)(4.5B)
Net Borrowings2.0B4.1B2.5B3.4B3.9B2.3B

Home Depot Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Home Depot or Specialty Retail sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Home Depot's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Home stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.19
β
Beta against NYSE Composite1.49
σ
Overall volatility
1.28
Ir
Information ratio -0.11

Home Depot Volatility Alert

Home Depot exhibits very low volatility with skewness of -0.18 and kurtosis of 1.01. 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 bullish 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 financial instruments 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.

Home Depot Fundamentals Vs Peers

Comparing Home Depot's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Home Depot's direct or indirect competition across all of the common fundamentals between Home Depot and the related equities. This way, we can detect undervalued stocks with similar characteristics as Home Depot or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Home Depot's fundamental indicators could also be used in its relative valuation, which is a method of valuing Home Depot by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Home Depot to competition
FundamentalsHome DepotPeer Average
Return On Equity0.14-0.31
Return On Asset0.17-0.14
Profit Margin0.1 %(1.27) %
Operating Margin0.14 %(5.51) %
Current Valuation385.71 B16.62 B
Shares Outstanding991.03 M571.82 M
Shares Owned By Insiders0.06 %10.09 %
Shares Owned By Institutions72.60 %39.21 %
Number Of Shares Shorted8.63 M4.71 M
Price To Earning19.67 X28.72 X
Price To Book318.51 X9.51 X
Price To Sales2.23 X11.42 X
Revenue152.67 B9.43 B
Gross Profit52.78 B27.38 B
EBITDA24.94 B3.9 B
Net Income15.14 B570.98 M
Cash And Equivalents2.76 B2.7 B
Cash Per Share2.42 X5.01 X
Total Debt52.24 B5.32 B
Current Ratio1.39 X2.16 X
Book Value Per Share1.84 X1.93 K
Cash Flow From Operations21.17 B971.22 M
Short Ratio2.27 X4.00 X
Earnings Per Share14.91 X3.12 X
Price To Earnings To Growth1.86 X4.89 X
Target Price380.52
Number Of Employees465 K18.84 K
Beta1.01-0.15
Market Capitalization338.93 B19.03 B
Total Asset76.53 B29.47 B
Retained Earnings83.66 B9.33 B
Working Capital7.76 B1.48 B
Current Asset16.48 B9.34 B
Note: Exercise or conversion by Vanwoerkom Jack of 25938 shares of Home Depot subject to Rule 16b-3 [view details]

Home Depot Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Home . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Home Depot Buy or Sell Advice

When is the right time to buy or sell Home Depot? Buying financial instruments such as Home Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Short and Long Term Debt Total46.3B50.4B52.2B54.9B
Total Assets71.9B76.4B76.5B80.4B

Use Investing Ideas to Build Portfolios

In addition to having Home Depot in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Printing and Publishing Thematic Idea Now

Printing and Publishing
Printing and Publishing Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Printing and Publishing theme has 20 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Printing and Publishing Theme or any other thematic opportunities.
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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 Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.

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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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 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
(0.05)
Dividend Share
6.43
Earnings Share
14.91
Revenue Per Share
152.785
Quarterly Revenue Growth
(0.02)
The market value of Home Depot is measured differently than its book value, which is the value of Home 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 if Home Depot is a good investment 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.