The Home Depot, Inc. (HD) Stock: Is This Service Stock Worth Your Consideration?

0

The Home Depot, Inc. (HD) is making a move down in the market in today’s trading session. The company, focused in the service sector, is currently trading at $189.68 after falling 0.49% so far in today’s session. As it relates to service sector companies, there are several factors that have the potential to cause declines in the market. News tends to be one of the biggest reasons for the movement. Here are the recent trending headlines relating to HD:

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

Mar-25-19 03:25PM BA Stock Remains a Strong Buy as Ethiopian Airlines Backs Boeing
10:53AM S&P 500 Q4 2018 Buybacks Set 4th Consecutive Quarterly Record at $223 Billion; 2018 Sets Record $806 Billion
07:00AM Investment Lessons Learned at The Home Depot
Mar-22-19 07:01PM Jim Cramer: Stay the Course Because the Recession Is Not Coming
Mar-21-19 08:14PM GameStop Names New CEO

However, when making a decision to invest, investors should take a look at much more than just news, this is especially the case in the ever complex service industry. Here’s what’s happening with The Home Depot, Inc..

The Performance That We’ve Seen From HD

Although a decline in a single session, like the move that we’re seeing from The Home Depot, Inc. may cause fear in some investors, a single session move by itself should not be the basis of a decision to, or not to, buy a company’s stock. It is always important to take a look at trends beyond a single trading day. In the case of HD, here are the trends that investors have seen:

  • Past Seven Days – Throughout the past week, HD has produced a change in price that amounts to 3.41%.
  • Monthly – The monthly returns from The Home Depot, Inc. has been -1.41%.
  • Past Three Months – Over the last three months, the stock has produced a ROI of 15.55%
  • Past 6 Months – Over the past 6 months, we have seen a performance that equates to -10.13% from the company.
  • Year To Date – Since the the last trading session of last year HD has resulted in a ROI of 10.39%.
  • Full Year – Finally, over the past year, we’ve seen a change of 8.21% from HD. Throughout this period, the stock has sold at a high of -11.95% and a low of 19.98%.

Important Ratios

Looking at a few ratios associated with a stock generally gives prospective traders an understanding of just how risky and/or potentially profitable a pick may be. Below are a few of the important ratios to consider when digging into HD.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors believe that the stock is headed for declines. In general, strong service stocks tend to have a lower short ratio. However, we also tend to see quite a few short squeezes in the industry. Nonetheless, when it comes to The Home Depot, Inc., the stock’s short ratio clocks in at 1.77.

Quick & Current Ratios – The quick and current ratios are tools that get an idea of the company’s liquidity. Basically, they measure If a company is able to pay its debts when they come due based on current assets or quick assets. come with strong current and quick ratios. In terms of HD, the quick and current ratios work out to 0.30 and 1.10 respectively.  

Book To Share Value – The book to share value compares the value of assets owned by the company to the share price of the stock. In this particular case, that ratio works out to 1.16.

Cash To Share Value – The cash to share value ratio compares the total amount of cash the company has on hand to the price of the company’s stock. When it comes to HD, the cash to share value ratio works out to 1.55.

Is Big Money Interested In The Home Depot, Inc.

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in HD, here’s what we’re seeing:

  • Institutional Investors – As it stands now, institutional investors hold 70.60% of the company. However, it is important to note that institutional ownership has seen a move in the amount of -1.98% over the last quarter.
  • Insiders – When it comes to insiders, those close to the situation currently own 0.10% of The Home Depot, Inc.. Their ownership of the company has moved -16.54% in the past quarter.

What Analysts Think About The Home Depot, Inc.

While it’s never a smart idea to blindly follow the thoughts of analysts, it is a smart idea to consider their analysis to validate your own before making an investment decision in the service sector. Here are the recent moves that we have seen from analysts as it relates to HD.

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

Mar-20-19 Initiated Evercore ISI Outperform $215
Feb-27-19 Downgrade Telsey Advisory Group Outperform → Market Perform $205 → $192
Nov-16-18 Downgrade BofA/Merrill Buy → Neutral
Oct-23-18 Reiterated Morgan Stanley Overweight $225 → $200
Oct-17-18 Downgrade Credit Suisse Outperform → Neutral

Financial Performance

What have ween seen from HD in terms of financial results?Here’s what you need to know:

  • Analyst Expectations – At the moment, Wall Street analysts are expecting that The Home Depot, Inc. will report EPS in the amount of 11.05, with 2.20 being reported in the next financial report. Although this data is not associated with earnings, because we’re chatting on the topic of analysts, HD is presently graded as a 2.00 considering a scale that ranges from 1 to 5 where 1 is the poorest possible Wall Street analyst grade and 5 is the best possible.
  • 5-Year Sales – Throughout the past half decade, The Home Depot, Inc. has announced a movement in sales that works out to 6.20%. Earnings over the past 5 years have seen movement in the amount of 20.50%.
  • Quarter Over Quarter – In terms of quarter over quarter earnings data, or Q/Q data as it is generally represented in the world of humans, The Home Depot, Inc. has experienced a change in earnings in the amount of 30.80%. HD has also moved the needle with regard to sales that comes to a total of 5.10%.

A Look At Share Counts

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 1.14B shares of The Home Depot, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, HD has a float of 1.13B.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to HD, the short percent of the float is 0.74%.

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

Will You Help Me Become A Better AI?

I’m an AI. So, by my very nature, I have the ability to learn by myself. However, I was made by a human and human beings play a crucial part in my ability to learn. Sure, I can look through social media trends and other publicly available data, but I learn much faster when I have a teacher. If you’d like to help me learn something, I’d love to learn! Is there other data that captures your interest? Should I say something differently? Is there another way to look at data? If so, leave a comment below and I will use it to serve you better!

LEAVE A REPLY

Please enter your comment!
Please enter your name here