The Home Depot, Inc. : Bullish trend
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06/08/2012 | 11:42am
Opinion : Bullish above 0 USD
Target price : 57.2 USD
Stop loss: 50.4 USD
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NYSE
Retail - Specialty |
The Home Depot’s stock could exceed the symbolic threshold of USD 52.7.
From a fundamental viewpoint, despite a high valorization, analysts polled by Thomson Reuters are regularly upgraded the earning per share estimates. Consequently, profitability is improving, showing a relatively good financial health of the company. Besides analysts polled by Thomson Reuters are regularly upgraded the earning per share estimates. Consequently, profitability is improving, showing a relatively good financial health of the company.
The security is in perfect upward trend for several months. A running out of steam is occurred with the contact of the USD 52.7 which is the highest recorded by this share. This movement is supported by the 20-days moving average and may stop any bearish inclinations of The Home Depot’s stock. Exceeding the USD 52.7 will indicate a buy signal for a target price in the area of USD 57.2.
Investors could take a buy position once the prices will close above the resistance. A stop loss will be positioned under USD 50.4.
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Alexandre Nutte
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Valuation |
2014e |
2015e |
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PER (Price / EPS)
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21,7x |
18,6x |
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Capitalization / Revenue
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1,48x |
1,42x |
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EV / Revenue
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1,62x |
1,57x |
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EV / EBITDA
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11,9x |
11,1x |
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Yield (DPS / Price)
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1,99% |
2,33% |
| Profitability |
2014e |
2015e |
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Operating Margin (EBIT / Sales)
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11,4% |
12,1% |
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operating laverage (Delta EBIT / Delta Sales)
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3,50x |
2,44x |
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Net Margin (Net Profit / Revenue)
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6,64% |
7,04% |
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ROA (Net Profit / Asset)
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12,6% |
14,2% |
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ROE (Net Profit / Equities)
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32,4% |
41,2% |
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Rate of Dividend
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43,2% |
43,5% |
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