Analysts see the The Home Depot (HD) stock as better bet to trade as they estimated $225.88 price target for the stock that may be achievable in one year time period. The stock price target is upside to current share price of $219.83. Investors could set buy and sell price points around target prices to maximize returns. Research analysts often publish stock price targets along with buy-sell recommendations. However, investors can and should determine their own price targets for entering and exiting stock positions.
With upside potential target price move of 2.75% comparing to current price, stock can be highly risky or profitable so need to be careful here. Analysts have set a Buy rating on stock with 2.2 mean recommendation. However, few traders solely rely on analysts’ opinion to trade instead of careful review on stock. Analysts’ opinion on stock can be helpful to initiate simple analysis.
Technical Indicators and Volatility: The Home Depot stock is trading in normal condition area as its RSI value is 57.57. Where Relative Strength Index helps to understand the price condition of the stock. RSI value is based on last 14-days performance.
Some Investors also rely on moving averages to the price trend for longer time periods. The stock is trading 9.51% from SMA of 20 days and standing 7.57% away from SMA of 50 days while moved -0.03% away from SMA of 200 days.
Beta is also import metrics to determine the excitability of stock as well as the risk factor. Beta stands at 0.98. A beta more than 1 then the stock can be considered risky and when it’s below 1 then stock is less risky.
When seeing the longer performance trend, The Home Depot (HD) stock managed to keep 8.65% return for the weekly session and noted performance of 17.74% for monthly period. The stock is showing a move of 0.66% so far this year and uncovered flow of 10.58% in last one year.
The shares price demonstrated -5.57% return for quarterly session while it has presented performance of -6.11% over the past six months. The stock revealed 56.32% change to a low over the previous 12 months and revealed move of -11.13% to a high over the same period.
Analysts usually set price target on assumptions about the company’s fundamentals as well. The company pays 2.73% of dividend annually from its total earnings. The Company has price to earnings ratio of 21.45 with EPS of $10.25.
The stock’s P/E is expected to grow 3.03 times in next 3 to 5 years where a less PEG indicated an undervalued stock. The Company earnings annual growth is 16.80% in past 5 years decade and projected to reach 7.08% for next 5 years. Its earnings have shown a growth of 7.80% on quarter over quarter basis while sales growth for quarter over quarter is -2.70%. Looking a yearly overview, the company earnings growth is noted at 6.10% for this year and estimated to achieve 9.68% growth for next year.
The Home Depot (HD) recorded a change of -0.89% to $219.83 on Thursday. The stock traded daily trading volume of 5054205 shares vs to average volume size of 6.88M shares. HD maintained activity of relative volume at 0.74.
Here the Profitability review may help you understand this. Different margins of Company business can help us to evaluate its expenses. Profit Margin of 10.20% tells that the company is earning for every one-dollar sale. The company has operating margin of 14.40% after deducting the variable costs from total sales and gross margin of 34.10% after deducting fixed costs from revenue.
The company has earnings of 21.70% relative to its total asset holdings and generated -599.50% returns as compared to total equity. The company is capable to get 43.60% returns on total investment.