Stock in Focus: Home Depot, Inc. (HD)

Company Profile:

The Home Depot, Inc. operates as a home improvement retailer. It operates The Home Depot stores that sell various building materials, home improvement products, lawn and garden products, and décor products, as well as provide installation, home maintenance, and professional service programs to do-it-yourself and professional customers.The company primarily serves home owners; and professional renovators/remodelers, general contractors, handymen, property managers, building service contractors, and specialty tradesmen, such as electricians, plumbers, and painters. As of February 3, 2019, the company operated 2,287 stores in the United States, Canada and Mexico. The Home Depot, Inc. was founded in 1978 and is based in Atlanta, Georgia.

Recent News:

Home Depot reported sales of $26.4 billion for the first quarter of fiscal 2019, a 5.7 percent increase from the first quarter of fiscal 2018. Comparable sales for the first quarter of fiscal 2019 were positive 2.5 percent, and comparable sales in the U.S. were positive 3.0 percent.

Its board of directors declared a first quarter cash dividend of $1.36 per share. The dividend is payable on June 20, 2019, to shareholders of record on the close of business on June 6, 2019.

The company reported sales of $26.5 billion for the fourth quarter of fiscal 2018, a 10.9 percent increase from the fourth quarter of fiscal 2017. Comparable sales for the fourth quarter of fiscal 2018 were positive 3.2 percent, and comp sales in the U.S. were positive 3.7 percent.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

HD’s strengths can be seen in its better growth and strong profitability. Its revenue and net income have increased over recent several years. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator, the MACD is trying to cross back up and the RSI(14) stands at 46.67 with positive bias. We rate The Home Depot, Inc. (HD) a STRONG BUY.

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