Last Updated: 18 Sep 2024
Executive Summary
Home Depot Inc. (HD) is the largest home improvement retailer in the United States, with a market capitalization of $380.67 billion. The company has a strong financial position, with an EBITDA of $24.58 billion and a net income of $14.87 billion in the past twelve months. HD has a trailing price-to-earnings ratio of 25.77 and a forward price-to-earnings ratio of 25.71. The company's shares are currently trading at $383.24, which is below the analyst target price of $381.35.
Company Overview
Home Depot was founded in 1978 and is headquartered in Atlanta, Georgia. The company operates over 2,300 stores in the United States, Canada, and Mexico. HD sells a wide range of home improvement products, including tools, building materials, and appliances. The company also offers a variety of services, such as installation and repair.
Fundamental Analysis
HD has a strong financial position, with a net income margin of 9.71% and a return on equity of 51.3%. The company's revenue has grown by an average of 6.5% over the past five years. HD has a strong balance sheet, with $15.6 billion in cash and equivalents and $24.5 billion in debt. The company's debt-to-equity ratio is 0.65, which is below the industry average.
Technical Analysis
HD's stock price has been in a downtrend since reaching a high of $391.75 in January 2023. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is at 45.5, which indicates that the stock is neither overbought nor oversold.
Short Term Outlook
HD's stock price is expected to continue to trade in a range in the short term. The company's earnings are expected to decline in the next quarter due to the impact of inflation and supply chain disruptions. However, HD's long-term outlook is positive. The company is expected to benefit from the continued growth of the home improvement market.
Long Term Outlook
HD is a well-positioned company with a strong brand and a loyal customer base. The company is expected to continue to grow its revenue and earnings in the long term. HD's stock is a good investment for investors who are looking for a long-term growth stock.
Analyst Recommendations
Analysts have a bullish outlook on HD. The average analyst rating is "buy" and the average analyst target price is $381.35.
