The stock price of Home Depot, Inc. (NYSE: HD) has dropped by -2.07 compared to previous close of 415.00. Despite this, the company has seen a fall of -2.17% in its stock price over the last five trading days. seekingalpha.com reported 2024-10-20 that The Home Depot, Inc.’s long-term earnings growth track record has been strong as the company has expanded its retail network. The recent weakness in the housing industry, and in the consumer sentiment, have driven an earnings hiccup in recent quarters. The macro-driven issues should slowly start to subside. While Home Depot’s growth outlook stands quite good, the valuation is too expensive at the current stock level.
Is It Worth Investing in Home Depot, Inc. (NYSE: HD) Right Now?
Home Depot, Inc. (NYSE: HD) has a price-to-earnings ratio that is above its average at 27.35x. The stock has a 36-month beta value of 1.01. Opinions on the stock are mixed, 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 992.68M, and at present, short sellers hold a 1.01% of that float. On October 22, 2024, the average trading volume of HD was 3.23M shares.
HD’s Market Performance
HD stock saw an increase of -2.17% in the past week, with a monthly gain of 4.24% and a quarterly increase of 13.01%. The volatility ratio for the week is 1.53%, and the volatility levels for the last 30 days are 1.66% for Home Depot, Inc. (HD). The simple moving average for the last 20 days is -0.71% for HD’s stock, with a simple moving average of 12.44% for the last 200 days.
Analysts’ Opinion of HD
Many brokerage firms have already submitted their reports for HD stocks, with Loop Capital repeating the rating for HD by listing it as a “Buy.” The predicted price for HD in the upcoming period, according to Loop Capital is $460 based on the research report published on October 09, 2024 of the current year 2024.
Gordon Haskett, on the other hand, stated in their research note that they expect to see HD reach a price target of $450. The rating they have provided for HD stocks is “Buy” according to the report published on October 02nd, 2024.
Jefferies gave a rating of “Buy” to HD, setting the target price at $426 in the report published on July 16th of the current year.
HD Trading at 5.33% 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 -3.60% of loss for the given period.
Volatility was left at 1.66%, however, over the last 30 days, the volatility rate increased by 1.53%, as shares surge +3.68% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +16.57% upper at present.
During the last 5 trading sessions, HD fell by -2.17%, which changed the moving average for the period of 200-days by +20.03% in comparison to the 20-day moving average, which settled at $409.30. In addition, Home Depot, Inc. saw 17.27% 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 Scardino Kimberly R, who sale 1,700 shares at the price of $363.00 back on Aug 19 ’24. After this action, Scardino Kimberly R now owns 7,037 shares of Home Depot, Inc., valued at $617,100 using the latest closing price.
Roseborough Teresa Wynn, the EVP, Gen. Counsel & Corp. Sec. of Home Depot, Inc., sale 5,195 shares at $359.32 during a trade that took place back on Aug 15 ’24, which means that Roseborough Teresa Wynn is holding 20,399 shares at $1,866,667 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 0.31. Equity return is now at value 513.36, with 17.05 for asset returns.
Based on Home Depot, Inc. (HD), the company’s capital structure generated 0.92 points at debt to capital in total, while cash flow to debt ratio is standing at 0.37. The debt to equity ratio resting at 12.23. The interest coverage ratio of the stock is 10.28.
Currently, EBITDA for the company is 24.94 billion with net debt to EBITDA at 2.57. When we switch over and look at the enterprise to sales, we see a ratio of 3.07. The receivables turnover for the company is 27.64for trailing twelve months and the total asset turnover is 1.57. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.15.
Conclusion
To sum up, Home Depot, Inc. (HD) has seen a better performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
