Home Depot Number Of Shares Shorted vs. Current Valuation

HD Stock  USD 427.92  1.43  0.33%   
Based on Home Depot's profitability indicators, Home Depot may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Home Depot's ability to earn profits and add value for shareholders. At present, Home Depot's Sales General And Administrative To Revenue is projected to slightly decrease based on the last few years of reporting. The current year's Operating Cash Flow Sales Ratio is expected to grow to 0.14, whereas EV To Sales is forecasted to decline to 2.46. At present, Home Depot's Income Before Tax is projected to increase significantly based on the last few years of reporting. The current year's Net Income is expected to grow to about 15.9 B, whereas Total Other Income Expense Net is projected to grow to (1.7 B).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.340.3338
Fairly Up
Very volatile
Net Profit Margin0.09740.0992
Fairly Down
Slightly volatile
Operating Profit Margin0.140.1421
Fairly Down
Slightly volatile
Pretax Profit Margin0.130.1305
Slightly Down
Slightly volatile
Return On Assets0.180.1979
Significantly Down
Slightly volatile
For Home Depot profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Home Depot to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Home Depot utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Home Depot's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Home Depot over time as well as its relative position and ranking within its peers.
  

Home Depot's Revenue Breakdown by Earning Segment

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For information on how to trade Home Stock refer to our How to Trade Home Stock guide.
Is Home Improvement Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Home Depot. If investors know Home will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Home Depot listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.04)
Dividend Share
2.25
Earnings Share
14.73
Revenue Per Share
156.158
Quarterly Revenue Growth
0.066
The market value of Home Depot is measured differently than its book value, which is the value of Home that is recorded on the company's balance sheet. Investors also form their own opinion of Home Depot's value that differs from its market value or its book value, called intrinsic value, which is Home Depot's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Home Depot's market value can be influenced by many factors that don't directly affect Home Depot's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Home Depot's value and its price as these two are different measures arrived at by different means. Investors typically determine if Home Depot is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Home Depot's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Home Depot Current Valuation vs. Number Of Shares Shorted Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Home Depot's current stock value. Our valuation model uses many indicators to compare Home Depot value to that of its competitors to determine the firm's financial worth.
Home Depot is rated # 2 in number of shares shorted category among its peers. It is rated as one of the top companies in current valuation category among its peers reporting about  50,200  of Current Valuation per Number Of Shares Shorted. Comparative valuation analysis is a catch-all technique that is used if you cannot value Home Depot by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Home Current Valuation vs. Number Of Shares Shorted

Number of Shares Shorted is the total amount of shares that are currently sold short by investors. When a stock is sold short, the short seller assumes the responsibility of repurchasing the stock at a lower price. The speculator will make money if the stock goes down in price or will experience a loss if the stock price goes up.

Home Depot

Shares Shorted

 = 

Shorted by Public

+

by Institutions

 = 
9.68 M
If a large number of investors decide to short sell an equity instrument within a small period of time, their combined action can significantly affect the price of the stock.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Home Depot

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
485.97 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Home Current Valuation vs Competition

Home Depot is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Consumer Discretionary industry is currently estimated at about 502.31 Billion. Home Depot totals roughly 485.97 Billion in current valuation claiming about 97% of stocks in Consumer Discretionary industry.

Home Depot Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Home Depot, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Home Depot will eventually generate negative long term returns. The profitability progress is the general direction of Home Depot's change in net profit over the period of time. It can combine multiple indicators of Home Depot, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-477 M-453.1 M
Operating Income21.7 B22.8 B
Income Before Tax19.9 B20.9 B
Total Other Income Expense Net-1.8 B-1.7 B
Net Income15.1 B15.9 B
Income Tax Expense4.8 BB
Net Income Applicable To Common Shares19.7 B20.7 B
Net Income From Continuing Ops15.1 B9.8 B
Non Operating Income Net Other63.2 M67.1 M
Interest Income178 M120.3 M
Net Interest Income-1.8 B-1.9 B
Change To Netincome579.6 M299.9 M
Net Income Per Share 15.16  11.98 
Income Quality 1.40  1.46 
Net Income Per E B T 0.76  0.76 

Home Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Home Depot. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Home Depot position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Home Depot's important profitability drivers and their relationship over time.

Use Home Depot in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Home Depot position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Home Depot will appreciate offsetting losses from the drop in the long position's value.

Home Depot Pair Trading

Home Depot Pair Trading Analysis

The ability to find closely correlated positions to Home Depot could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Home Depot when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Home Depot - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Home Depot to buy it.
The correlation of Home Depot is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Home Depot moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Home Depot moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Home Depot can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Home Depot position

In addition to having Home Depot in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Railroads Thematic Idea Now

Railroads
Railroads Theme
Companies involved in manufacturing and maintenance of freight railroads and passenger trains as well as providing railroad services to public. The Railroads theme has 38 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Railroads Theme or any other thematic opportunities.
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To fully project Home Depot's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Home Depot at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Home Depot's income statement, its balance sheet, and the statement of cash flows.
Potential Home Depot investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Home Depot investors may work on each financial statement separately, they are all related. The changes in Home Depot's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Home Depot's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.