On the stock market since 1981, it operates in the world of consumer spending. It has 472,400 employees. Now — the numbers.
This is an established company with proven profits.
Revenue is spread across several lines; no single product carries the company.
The gap is $64.0B. In times of high interest rates, a gap like that can squeeze a company.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Profit power and business quality lead the class.
Clearly below the class average.
Clearly below the class average.
There is growth, but not at top-of-the-class tempo.
Clearly below the class average.
Valuation: The stock trades at a price that looks expensive next to its earnings; that can cap future returns.
Price Momentum: The stock has lagged the market in recent months; investor interest is weak right now.
angles, checked one by one.
The 2 that stand out are on screen; the rest came back neutral.
The council scores out of 10; report-card grades are out of 100.
Revenue Growth: Sales are growing slowly.
The stock trades 22% below its peak. The market has trimmed its expectations for the company.
Over the last 12 months, company executives reported 80 buys and 59 sells. Management buying with its own money is usually read as a good sign.
It pays out $9.26 per share each year — regular cash for whoever holds the stock.
Over the last 3 years, sales grew only 2% a year on average. At this size, speeding back up is not easy.
Today’s price already includes part of tomorrow’s optimism. Report-card grade: 39/100.
Buyers haven’t stepped back in yet; the price hasn’t found its footing. Report-card grade: 42/100. For a turnaround signal, the stock first needs to close the gap with the market.
On our five-subject report card, HD sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
The takeaway: HD is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s whether the price paid for the stock is too high.
The total grade weighs these five subjects against the sector — it isn’t a simple average of the five.