Home Depot Story

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HD -- USA Stock  

USD 268.55  2.85  1.07%

As many millenniums are trying to avoid consumer cyclical space, it makes sense to digest Home Depot a little further and try to understand its current market patterns. As we have suggested previously, Home Depot is beginning its dip as shareholders shift to be more bearish due to the increased sector volatility. The returns on the market and returns on Home Depot appear slightly-related for the last few months. Sound basic indicators of the firm may also indicate signals of longer-term gains for Home Depot shareholders. Home Depot is scheduled to announce its earnings today. The next earnings report is expected on the 17th of November 2020.
Published over a month ago
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Should I shadow Home Depot (NYSE:HD) shareholders?
This firm's average rating is Buy from 19 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Home Depot market sentiment investors' perception of the future value of Home Depot. Let us look at a few aspects of Home Depot technical analysis. The company has Net Profit Margin (PM) of 9.79 %, which may suggest that it has sound control over its expenditures, executes well on its competitive polices, or have a solid pricing strategies. This is very large. Likewise, it shows Net Operating Margin (NOM) of 15.95 %, which signifies that for every $100 of sales, it has a net operating income of 0.16.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Home Depot. In general, we focus on analyzing Home Depot stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Home Depot's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Home Depot's intrinsic value. In addition to deriving basic predictive indicators for Home Depot, we also check how macroeconomic factors affect Home Depot price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.

How does Home Depot Stands against Peers?

Analyzing Home Depot competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Home Depot across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out Home Depot Competition Details

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Home Depot, but it might be worth checking our own buy vs. sell analysis

Closer look at Home Depot Semi Variance

Home Depot has current Semi Variance of 1.41. Semi-variance provides a good measure of downside volatility for equity or a portfolio. It is similar to variance, but it only looks at periods where the returns are less than the target or average level.

Semi-variance is the square of semi-deviation. Semi-variance is calculated by averaging the deviations of returns that have a result that is less than the mean.

Semi Variance 
SUM = Summation notation
RET DEV = Actual return deviation over selected period
N(ZERO) = Number of points with returns less than zero
Let's now compare Home Depot Semi Variance to its closest peers:

Another setback for Home Depot shareholders

Skewness just dropped to -0.94, may indicate upcoming price decline. Home Depot has relatively low volatility with skewness of -0.94 and kurtosis of 4.6. However, we advise all investors to independently investigate Home Depot to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Final Take On Home Depot

Although some firms within the home improvement retail industry are still a little expensive, even after the recent corrections, Home Depot may offer a potential longer-term growth to shareholders. To summarize, as of the 18th of August 2020, our actual 30 days buy-hold-sell recommendation on the firm is Strong Buy. We believe Home Depot is fairly valued with very low odds of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Home Depot. Please refer to our Terms of Use for any information regarding our disclosure principles.

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