Home Depot, Inc. (NYSE: HD)’s stock price has gone decline by -0.03 in comparison to its previous close of 363.36, however, the company has experienced a 1.34% increase in its stock price over the last five trading days. seekingalpha.com reported 2024-07-22 that Home Depot’s robust business model and wide economic moat make it a resilient long-term investment, despite recent economic headwinds impacting sales. Strategic investments in pro contractors and an omnichannel approach position HD for future growth, particularly as building maintenance demand rises. Consistent dividend growth, share buybacks, and a strong balance sheet highlight Home Depot’s commitment to returning value to shareholders amidst market fluctuations.
Is It Worth Investing in Home Depot, Inc. (NYSE: HD) Right Now?
The price-to-earnings ratio for Home Depot, Inc. (NYSE: HD) is 24.37x, which is above its average ratio. Moreover, the 36-month beta value for HD is 0.99. Analysts have varying opinions on the stock, with 12 analysts rating it as a “buy,” 12 as “overweight,” 9 as “hold,” and 0 as “sell.”
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The public float for HD is 990.99M and currently, short sellers hold a 0.78% of that float. On July 23, 2024, HD’s average trading volume was 3.52M shares.
HD’s Market Performance
HD stock saw an increase of 1.34% in the past week, with a monthly gain of 2.78% and a quarterly increase of 8.32%. The volatility ratio for the week is 2.29%, and the volatility levels for the last 30 days are 2.01% for Home Depot, Inc. (HD). The simple moving average for the last 20 days is 4.15% for HD’s stock, with a simple moving average of 7.01% for the last 200 days.
Analysts’ Opinion of HD
Many brokerage firms have already submitted their reports for HD stocks, with Jefferies repeating the rating for HD by listing it as a “Buy.” The predicted price for HD in the upcoming period, according to Jefferies is $426 based on the research report published on July 16, 2024 of the current year 2024.
DA Davidson, on the other hand, stated in their research note that they expect to see HD reach a price target of $395, previously predicting the price at $352. The rating they have provided for HD stocks is “Buy” according to the report published on June 26th, 2024.
Telsey Advisory Group gave a rating of “Market Perform” to HD, setting the target price at $360 in the report published on April 01st of the current year.
HD Trading at 6.16% from the 50-Day Moving Average
After a stumble in the market that brought HD to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -8.47% of loss for the given period.
Volatility was left at 2.01%, however, over the last 30 days, the volatility rate increased by 2.29%, as shares surge +2.09% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +7.21% upper at present.
During the last 5 trading sessions, HD rose by +1.34%, which changed the moving average for the period of 200-days by +24.43% in comparison to the 20-day moving average, which settled at $349.14. In addition, Home Depot, Inc. saw 4.82% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at HD starting from Carey Matt, who sale 56,008 shares at the price of $345.18 back on May 16 ’24. After this action, Carey Matt now owns 33,325 shares of Home Depot, Inc., valued at $19,332,587 using the latest closing price.
Siddiqui Fahim, the EVP and CIO of Home Depot, Inc., sale 3,000 shares at $343.79 during a trade that took place back on May 16 ’24, which means that Siddiqui Fahim is holding 8,155 shares at $1,031,370 based on the most recent closing price.
Stock Fundamentals for HD
Current profitability levels for the company are sitting at:
- 0.14 for the present operating margin
- 0.33 for the gross margin
The net margin for Home Depot, Inc. stands at 0.1. The total capital return value is set at 0.39. Equity return is now at value 1362.97, with 19.11 for asset returns.
Based on Home Depot, Inc. (HD), the company’s capital structure generated 0.96 points at debt to capital in total, while cash flow to debt ratio is standing at 0.51. The debt to equity ratio resting at 22.5. The interest coverage ratio of the stock is 10.86.
Currently, EBITDA for the company is 24.94 billion with net debt to EBITDA at 1.91. When we switch over and look at the enterprise to sales, we see a ratio of 2.68. The receivables turnover for the company is 36.99for trailing twelve months and the total asset turnover is 1.92. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.34.
Conclusion
To wrap up, the performance of Home Depot, Inc. (HD) has been better in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
