Home Depot, Inc (HD) Stock: A Closer Look at the Market Potential

VLD Stock

The price-to-earnings ratio for Home Depot, Inc (NYSE: HD) is above average at 24.25x, Company’s 36-month beta value is 1.03.Analysts have differing opinions on the stock, with 22 analysts rating it as a “buy,” 5 as “overweight,” 12 as “hold,” and 0 as “sell.”

The public float for HD is 993.19M, and currently, short sellers hold a 1.02% ratio of that floaft. The average trading volume of HD on May 06, 2025 was 3.82M shares.

HD) stock’s latest price update

Home Depot, Inc (NYSE: HD)’s stock price has decreased by -0.77 compared to its previous closing price of 364.52. However, the company has seen a 1.35% increase in its stock price over the last five trading sessions. https://247wallst.com reported 2025-05-05 that Dividend investing may be more favored by older investors who value passive income over growth and capital appreciation. However, investing in dividend payers can be a wise move, regardless of one’s age. Arguably, it’s better to go for the proven blue chips with dividends as a beginning investor than jump into the deep end with incredibly volatile but exciting growth stocks. When it comes to hot growth stocks, the stakes are higher, and a new investor may be more inclined to “chase” momentum and be startled out of a position when such momentum reverses. In any case, there’s really no right age to take on more of a dividend strategy. Ultimately, it depends on one’s needs, goals, and tolerance for risk. Most young people should be in growth mode as they look to maximize the appreciation of their nest eggs. And while dividends can be a nice-to-have for such new, young investors, it’s worth noting that a dividend strategy isn’t always the most tax-efficient way to go. Additionally, a dividend-focused strategy is not a proven way to beat the markets consistently over the long haul. A t the end of the day, more money paid out in dividends means less for a company to reinvest into its growth drivers. Often, lower growth means higher dividend yields, and vice versa. Though some exceptions can be made during the depths of a stock market correction or crash. In this piece, we’ll look at common approaches among investors in different age groups to help readers better find the right allocation. Key Points Younger investors should favor growth over yield while gradually transitioning as they age and their passive income needs grow. Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; get started by clicking here.(Sponsor) Younger investors: Go for growth Young investors in their 20s and 30s should seek to have a heavier allocation towards the types of growth stocks that have little (or no) dividends. Indeed, we’re talking about yields south of the 1% mark. And while a few extra dollars in dividend income are nice to have, one must remember that any such dividends should be reinvested anyhow to jolt one’s growth. In any case, I think it makes less sense to have more than 25% of one’s equity portfolio in high-yielding dividend stocks unless there’s some specific passive income need that needs to be met. Microsoft (NASDAQ:MSFT), which yields 0.84%, stands out as a perfect holding for a younger investor who prioritizes capital gains over dividends. And while the yield is quite small, I am a fan of the dividend growth trajectory as the company executes on the AI boom. With around 30% of code reportedly now generated by AI, at least according to CEO Satya Nadella, Microsoft seems to have the perfect AI flywheel that could power it to robust gains over the long haul. Middle-aged investors: Go for dividend growth For someone in middle age, opting for a dividend and growth mix seems to make the most sense. Whether that entails 50% in dividend stocks and 50% in higher-growth names, finding the right balance as one begins the process of winding down in their 40s and 50s for a potentially early retirement could prove wise. Additionally, dividend-growth stocks that have a long history of raising dividends by double-digit percentage amounts in any given year could be an excellent choice. For instance, shares of the Home Depot (NYSE:HD) stand out as a stellar option, given its robust dividend and respectable growth profile. The home improvement firm has a wide moat surrounding its corner of the market, which has allowed it to average around 15% in dividend growth over the past five years. With a solid 2.56% dividend yield and above-average dividend growth prospects, HD stock stands out as a perfect bet for dividend investors in their 40s or 50s. Retirement age: Doubling down on passive income Finally, someone in retirement may wish to go heavier on the dividend stocks. While it may still be hard to live off dividends alone, I do think that those with enough passive income streams (think pensions, Social Security, etc) may have the opportunity to minimize the withdrawal from their invested principal. For such income-focused retirees, the iShares International Select Dividend ETF (IDV) stands out, with a nice 5.6% yield and broad exposure to the developed international markets beyond the U.S. Also, as the tariff war continues, the international financial markets may not have as much downside risk as the S&P 500. The post I’m curious about dividend investing – What age and allocations are others using? appeared first on 24/7 Wall St.

HD’s Market Performance

Home Depot, Inc (HD) has seen a 1.35% rise in stock performance for the week, with a 1.64% gain in the past month and a -11.51% plunge in the past quarter. The volatility ratio for the week is 1.66%, and the volatility levels for the past 30 days are at 3.10% for HD. The simple moving average for the last 20 days is 2.07% for HD stock, with a simple moving average of -6.33% for the last 200 days.

Analysts’ Opinion of HD

HSBC Securities, on the other hand, stated in their research note that they expect to see HD reach a price target of $410, previously predicting the price at $356. The rating they have provided for HD stocks is “Hold” according to the report published on February 26th, 2025.

Telsey Advisory Group gave a rating of “Outperform” to HD, setting the target price at $455 in the report published on November 08th of the previous year.

HD Trading at -0.34% 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 -17.67% of loss for the given period.

Volatility was left at 3.10%, however, over the last 30 days, the volatility rate increased by 1.66%, as shares surge +2.21% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -6.12% lower at present.

During the last 5 trading sessions, HD rose by +1.35%, which changed the moving average for the period of 200-days by -2.73% in comparison to the 20-day moving average, which settled at $354.40. In addition, Home Depot, Inc saw -7.01% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at HD starting from BRENNEMAN GREGORY D, who purchase 2,884 shares at the price of $346.66 back on Mar 14 ’25. After this action, BRENNEMAN GREGORY D now owns 1,442 shares of Home Depot, Inc, valued at $999,767 using the latest closing price.

Bastek William D, the EVP, Merchandising of Home Depot, Inc, sale 2,969 shares at $416.61 during a trade that took place back on Nov 22 ’24, which means that Bastek William D is holding 21,514 shares at $1,236,915 based on the most recent closing price.

Stock Fundamentals for HD

Current profitability levels for the company are sitting at:

  • 0.13 for the present operating margin
  • 0.33 for the gross margin

The net margin for Home Depot, Inc stands at 0.09. The total capital return value is set at 0.32. Equity return is now at value 385.37, with 17.15 for asset returns.

Based on Home Depot, Inc (HD), the company’s capital structure generated 0.9 points at debt to capital in total, while cash flow to debt ratio is standing at 0.32. The debt to equity ratio resting at 9.38. The interest coverage ratio of the stock is 9.27.

Currently, EBITDA for the company is 25.43 billion with net debt to EBITDA at 2.42. When we switch over and look at the enterprise to sales, we see a ratio of 2.63. The receivables turnover for the company is 32.53for trailing twelve months and the total asset turnover is 1.66. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.11.

Conclusion

In a nutshell, Home Depot, Inc (HD) has experienced a mixed performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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