Drilling Down Into The Home Depot, Inc. (HD)

The Home Depot, Inc. (HD) is an interesting player in the Services space, with a focus on Home Improvement Stores. The stock has been active on the tape, currently trading at $146.68, up from yesterday’s close by 1.22%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

This company has been competing with others in the Services space and offers its own combination of interesting factors The Home Depot, Inc. (HD) currently trades with a market capitalization of $177.16 Billion. That value represents a market adjusting for revenues that have been growing by 5.85 % on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For HD, the company currently has $2.54 Billion of cash on the books, which is offset by $1.25 Billion current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $8.16 Billion over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $1.6 on a per share basis this quarter. Perhaps, that suggests something about why 2.55% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, The Home Depot, Inc. recorded a 52-week high of $146.33. It is now trading -0.34999999999999% off that level. The stock is trading $138.10 its 50-day moving average by -8.58%. The stock carved out a 52-week low down at $118.57.

In recent action, The Home Depot, Inc. (HD) has made a move of +6.61% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 2.3, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 0.70% with $1.21 Billion sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of HD.

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