Company Analysis - Home Depot, Inc.

Company Analysis: Home Depot, Inc.

Marc Hoeksema

Liberty University

Company Analysis: Home Depot, Inc.

Home Depot, Inc. is a home improvement retailer that offers the sales of home improvement products along with building materials.  Its products include building materials, home improvement products, lawn and garden products, and décor products along with also offering installation services and tool and equipment rental (Reuters, 2018).

Home Depot, Inc. is listed on the NYSE as HD.  Its stock has ranged from $144.25 to $207.60 over the last 12 months (Reuters, 2018).  As of July 3, 2018, the stock price was $193.62.  On May 17, 2018, the Home Depot, Inc. declared a first quarter dividend of $1.03 (Reuters, 2018).

The P/E ratio for Home Depot, Inc. is 26.07 while the dividend yield was 2.13%.  This is compared to one of its competitors, Lowe’s, who had a P/E ratio of 21.69 and dividend yield of 1.73% (Marketbeat.com, 2018).  The quarterly revenue stream has been showing positive over the past year, 6.18% July 2017, although the last quarter was slightly down, 4.4% April 2018 (Google Finance, 2018).  

There are thirty Wall Street analysts that have issued rating and price targets for Home Depot, Inc. in the last twelve months.  While the consensus price target has ranged from $184.1980 to $198.0696 over the last 180 days, its average twelve-month price target is $198.0696.  This suggests that Home Depot, Inc. and its stock has a possible upside of 1.79%.  There are currently 6 hold ratings and 24 buy rating among the Wall Street analysts, which is resulting in a consensus rating of “Buy” (Marketbeat.com, 2018).

Home Depot, Inc. has been consistently in the positive for its revenue stream the last 4 quarters along with having an attractive dividend yield.  So while 20% of the Wall Street analysts recommended a hold rating, the vast majority of 80% recommended a buy rating.  Therefore, as revenue and the dividend yield continue to be positive, the buying of the Home Depot, Inc. stock would be favorable and advisable.  

References

Google Finance. (2018). google.com/finance. Retrieved from google.com/finance: google.com/finance/homedepotinc