HD Supply Story

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HDS -- USA Stock  

USD 55.99  0.000002  0.00%

It seems HD Supply will continue to recover much faster as its share price surged up 6.13% today. HD Supply's current daily volatility is 2.18 percent, with a beta of 0.89 and an alpha of 0.12 over DOW. As many of us are excited about stable market, it is fair to sum up HD Supply Holdings. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over three months ago
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Should we continue shadow HD Supply (NASDAQ:HDS) executives?
HD Supply Holdings has roughly 147 M in cash with 686 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.91. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. HD Supply has an asset utilization ratio of 100.57 percent. This connotes that the company is making $1.01 for each dollar of assets. An increasing asset utilization means that HD Supply Holdings is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in HD Supply, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding HD Supply along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of HD Supply's stock 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 HD Supply in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as HD Supply. Your research has to be compared to or analyzed against HD Supply's peers to derive any actionable benefits. When done correctly, HD Supply'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 HD Supply Holdings.

How important is HD Supply's Liquidity

HD Supply financial leverage refers to using borrowed capital as a funding source to finance HD Supply Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. HD Supply 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 HD Supply'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 HD Supply, but it might be worth checking our own buy vs. sell analysis

HD Supply Correlation with Peers

Investors in HD Supply can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in HD Supply Holdings. Diversification will allow for the same portfolio return with reduced risk. The correlation table of HD Supply and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities HD Supply is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of HD Supply for more details

Detailed Outlook On HD Supply

HD Supply appears to be very steady, given 1 month investment horizon. HD Supply Holdings retains Efficiency (Sharpe Ratio) of 0.16, which attests that the entity had 0.16% of return per unit of price deviation over the last month. Our outlook to determining the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for HD Supply, which you can use to evaluate future volatility of the firm. Please utilize HD Supply Holdings Semi Deviation of 2.06, standard deviation of 2.39, and Market Risk Adjusted Performance of 0.1697 to validate if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will HD Supply latest spike continue?

Latest mean deviation is at 1.63. HD Supply Holdings currently demonstrates below-verage downside deviation. It has Information Ratio of 0.05 and Jensen Alpha of 0.12. However, we do advice investors to further question HD Supply Holdings expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

While many other companies under the industrial distribution industry are still a bit expensive, HD Supply may offer a potential longer-term growth to retail investors. The inconsistency in the assessment between current HD Supply valuation and our trade advice on HD Supply is due to the recent market swings and your selection of investing horizon. 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 HD Supply.

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 Achuva Shats do not own shares of HD Supply Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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