Should we be purchasing Cisco or Home Depot?

HD Stock  USD 329.27  2.23  0.67%   
Cisco Systems would recover faster from the latest slide as its shares price went up 0.11% to Home Depot's 2.55%As many rational traders are trying to avoid consumer cyclical space, it makes sense to digest Home Depot a little further and understand how it stands against Cisco Systems and other similar entities. We are going to discuss some of the competitive aspects of both Home Depot and Cisco.
Published over two months ago
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By analyzing existing fundamental indicators between Home Depot and Cisco, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Cisco with a short position in Home Depot. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Home Depot has an asset utilization ratio of 369.86 percent. This indicates that the company is making $3.7 for each dollar of assets. An increasing asset utilization means that Home Depot is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Home Depot's Liquidity

Home Depot financial leverage refers to using borrowed capital as a funding source to finance Home Depot ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Home Depot financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Home Depot's total debt and its cash.

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

Is Home Depot valued correctly by the market?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check Home Depot revenue. Based on the latest financial disclosure, Home Depot reported 155.24 B of revenue. This is much higher than that of the Consumer Cyclical sector and significantly higher than that of the Home Improvement Retail industry. The revenue for all United States stocks is significantly lower than that of the stock. As for Cisco Systems we see revenue of 51.56 B, which is much higher than that of the Home Improvement Retail

Home Depot155.24 Billion
Sector0.0
Cisco51.56 Billion
155.2 B
Home Depot
Sector
51.6 B
Cisco

Another small dip for Home Depot

Home Depot jensen alpha is up to 0.0.
As of the 15th of November 2022, Home Depot retains the risk adjusted performance of 6.0E-4, and Market Risk Adjusted Performance of (0.001555). Home Depot technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We were able to break down nineteen technical drivers for Home Depot, which can be compared to its competitors. Please check out Home Depot maximum drawdown, and the relationship between the information ratio and downside variance to decide if Home Depot is priced fairly, providing market reflects its last-minute price of 306.92 per share. Given that Home Depot has jensen alpha of (0.001997), we strongly advise you to confirm Home Depot's regular market performance to make sure the company can sustain itself at a future point.

Our Final Perspective on Home Depot

Although other entities in the home improvement retail industry are either recovering or due for a correction, Home Depot may not be performing as strong as the other in terms of long-term growth potentials. With an optimistic outlook on your 90 days horizon, it may be a good time to take over new shares of Home Depot or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Home Depot.

Editorial Staff

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 Rifka Kats 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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