Home Depot Stock Performance

HD -  USA Stock  

USD 349.10  0.48  0.14%

The company retains a Market Volatility (i.e., Beta) of 0.8541, which attests to possible diversification benefits within a given portfolio. Let's try to break down what Home Depot's beta means in this case. Home Depot returns are very sensitive to returns on the market. As the market goes up or down, Home Depot is expected to follow. Even though it is essential to pay attention to Home Depot current price history, it is always good to be careful when utilizing equity current price movements. Our philosophy towards determining any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Home Depot exposes twenty-one different technical indicators, which can help you to evaluate its performance. Home Depot has an expected return of -0.0721%. Please be advised to check out Home Depot maximum drawdown, and the relationship between the information ratio and downside variance to decide if Home Depot performance from the past will be repeated at some point in the near future.

Home Depot Stock Performance 

 
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Home Depot Performance
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Over the last 90 days Home Depot has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Home Depot is not utilizing all of its potentials. The new stock price tumult, may contribute to shorter-term losses for the shareholders. ...more

Home Depot Price Channel

Quick Ratio0.32
Fifty Two Week Low246.59
Target High Price470.00
Fifty Two Week High420.61
Payout Ratio43.09%
Trailing Annual Dividend Yield1.71%
Target Low Price300.00

Home Depot Relative Risk vs. Return Landscape

If you would invest  36,768  in Home Depot on October 26, 2021 and sell it today you would lose (1,858)  from holding Home Depot or give up 5.05% of portfolio value over 90 days. Home Depot is generating negative expected returns and assumes 1.5332% volatility on return distribution over the 90 days horizon. Put differently, 13% of stocks are less risky than Home Depot on the basis of their historical return distribution, and some 99% of all equities are expected to be superior in generating returns on investments over the next 90 days.
 Daily Expected Return (%) 
      Risk (%) 
Allowing for the 90-day total investment horizon Home Depot is expected to under-perform the market. In addition to that, the company is 1.8 times more volatile than its market benchmark. It trades about -0.05 of its total potential returns per unit of risk. The DOW is currently generating roughly -0.08 per unit of volatility.

Home Depot Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Home Depot's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Home Depot, and traders can use it to determine the average amount a Home Depot's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = -0.047

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Estimated Market Risk
 1.53
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 13 %
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Expected Return
 -0.07
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Based on monthly moving average Home Depot is performing at about 0% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Home Depot by adding it to a well-diversified portfolio.

About Home Depot Performance

To evaluate Home Depot Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Home Depot generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Home Depot Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Home Depot stock market performance in a much more refined way. At Macroaxis, we take it even further. The Macroaxis performance score is an integer between 0 and 100 that represents Home Depot's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2022
Effect of Exchange Rate Changes on Cash87.4 M94.3 M
Return on Investment 47.75  41.86 
Return on Average Assets 0.23  0.22 
Return on Average Equity 63.64  68.66 
Return on Invested Capital 0.31  0.31 
Return on Sales 0.16  0.15 
The Home Depot, Inc. operates as a home improvement retailer. The Home Depot, Inc. was incorporated in 1978 and is based in Atlanta, Georgia. Home Depot operates under Home Improvement Retail classification in the United States and is traded on New York Stock Exchange. It employs 500000 people.

Things to note about Home Depot

Checking the ongoing alerts about Home Depot for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for Home Depot help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

Home Depot Alerts

Equity Alerts and Improvement Suggestions

Home Depot generated a negative expected return over the last 90 days
Home Depot is unlikely to experience financial distress in the next 2 years
Home Depot has a poor financial position based on the latest SEC disclosures
About 72.0% of the company shares are owned by institutional investors
Latest headline from www.reuters.com: Dow closes lower after disappointing bank results - Reuters
Please check Risk vs Return Analysis. 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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When running Home Depot 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 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 Depot 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.
The market value of Home Depot is measured differently than its book value, which is the value of Home Depot 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 Home Depot value 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.