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HD

CONSUMER CYCLICAL

The Home Depot Inc

AI Stock Analysis· Bearish
Jun 22 · 7:59 PM ET

The Home Depot Inc (HD) is currently priced at $326.62, reflecting a decline of 2.29% today. The technical indicators suggest a bearish sentiment, with a SELL signal carrying a confidence level of 38%. The Relative Strength Index (RSI) stands at 53.8, indicating that the stock is neither overbought nor oversold. The short-term Simple Moving Average (SMA20) is at $319.77, which is below the current price, while the SMA50 and SMA200 are at $322.66 and $358.29, respectively. The MACD shows a positive divergence with a value of 3.43, but the signal line at 1.35 and histogram at 2.09 suggest that momentum may be weakening.

From a fundamental perspective, Home Depot's revenue growth shows a robust year-over-year increase of 324.0%, although the quarter-over-quarter growth has slowed to 4.8%. The earnings per share (EPS) stands at $14.07, but the EPS growth has declined by 4.3% QoQ. The company boasts impressive gross and operating margins at 33.16% and 12.68%, respectively, and a return on equity (ROE) of 128.4%, highlighting effective management and profitability. Despite these strengths, the current P/E ratio of 23.8 and forward P/E of 22.5 suggest that the stock may be overvalued relative to its growth rate, especially given the recent cooling in EPS growth. Analyst consensus remains bullish with a majority rating of BUY and a target price of $370.18, indicating potential upside.

While there are no earnings scheduled within the next 30 days, the last report indicated some key metrics that investors should monitor closely. The notable deceleration in EPS growth could signal underlying challenges that may affect future performance. Additionally, recent investments from firms like Pullen Investment Management and Cornerstone Planning indicate continued institutional interest. One specific factor to watch is how upcoming weather events may influence sales, particularly as the market expectations hinge on seasonal demand related to home improvement projects.

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52-Week Range

$286.95$418.06

$328.98

Fundamentals

Market Cap$328.8B
P/E Ratio23.4
EPS$14.07
Dividend Yield2.07%
Dividend / Share$6.93
ROE128.4%
Profit Margin8.4%
Debt / Equity

Trading

Volume555K
Avg Volume (10D)
Shares Outstanding997.1M

HD News

260 articles

Price Data

Open$323.87
Previous Close$326.62
Day High$329.02
Day Low$321.70
52 Week High$418.06
52 Week Low$286.95

About The Home Depot Inc

The Home Depot, Inc., commonly known as Home Depot, is the largest home improvement retailer in the United States, supplying tools, construction products, and services. The company is headquartered in incorporated Cobb County, Georgia, with an Atlanta mailing address.

472.4K employees
Listed September 22, 1981
CONSUMER CYCLICALHOME IMPROVEMENT RETAIL

Company Details

Security TypeCommon Stock
ExchangeNYSE
CurrencyUSD
Round Lot
SICHOME IMPROVEMENT RETAIL
CIK
Composite FIGI
Share Class FIGI