HOME DEPOT INC. THE - Home Depot - 11/01/2023 (GMT)

Home Depot, Inc. (symbol ‘HD’) share price incurred relatively high losses for the quarter losing around 15% of its valuation. The company’s earnings report for the fiscal quarter ending October 2023 is expected to be released on Tuesday 14th of November, before market open. The consensus EPS is $3.80 against $4.24 of the same quarter last year.

‘The company lost the gains that it managed to achieve in the previous two quarters and is now trying to close the month on a positive session. As of 31/07/2023 the company had a positive current ratio at 131% , indicating the ability to repay its current liabilities with the liquid assets at hand while at the same time the total long term debt of the company makes up more than 50% of the total liabilities. This means the company is relying heavily on debt which is quite risky given the constant changes in the monetary policy landscape where interest rates are changing rapidly making the debt costlier to manage.  Also the net income of the company has been declining throughout the whole of 2023 making the company a rather risky addition to an investors portfolio.  ’ said Antreas Themistokleous, trading specialist at Exness.
 
Technical analysis shows that the price has found sufficient support around the $275-$280 price area and is currently at a correction phase at the time of this report been written. The combination of the support area of previous price reaction as well as the lower band of the Bollinger bands have proven to be strong enough for the price to move to the upside for the time being. An overall picture however is rather bearish since the 50 day moving average has recently crossed below the 100 day moving average while the Stochastic has moved away from the extreme oversold levels.