How to Buy Home Depot Stock
Home Depot Inc
Home Depot is a home improvement company located in Georgia, United States, which is part of the Consumer Cyclical sector, and is traded under the ticker HD on the NYSE exchange.
Home Depot stock last closed at $332.89, up 0.02% from the previous day, and has increased 11.35% in one year. It has overperformed other stocks in the Home Improvement Retail industry by 0.02 percentage points. Home Depot stock is currently +21.38% from its 52-week low of $274.26, and -16.12% from its 52-week high of $396.87.
As of Apr 18, 2024, there are 991.02M HD shares outstanding. The market value of HD is $329.90B. In the last 24 hours, 3.6M HD shares were traded.
How to Buy Home Depot Stock
Wondering how to invest in Home Depot stock? Here's how.
- Figure out where to buy Home Depot stock: You need to choose a stock brokerage, but don't worry - we've researched dozens of online brokerages and apps to help you figure out where to buy Home Depot stock.
- Open a brokerage account: Sign up for 0% commission trading with the highest-rated brokerage we've found.
- Fund your brokerage account: Select your method of payment and add your details.
- Analyze Home Depot stock: The Home Depot ticker symbol is HD. Is Home Depot stock a good investment? Should you buy shares of HD? How do HD's underlying business fundamentals look? Do top analysts think Home Depot is a good buy? Why has HD's stock price moved recently? (Hint: Our stock research tools can help you figure out if HD is a good stock to buy).
- Place your HD purchase: Decide if you will purchase HD shares at the current market price or use a limit order to purchase HD shares at a given price.
- Get the latest news on your HD position: Create a watchlist to get live updates on your investment in Home Depot shares.
Step 1: Figure out where to buy Home Depot stock
You need an online brokerage account to access the NYSE market and buy HD stock.
Our favorite brokerage: eToro
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Open eToro AccountStep 2: Open a brokerage account
Now that you've picked the right brokerage, you need to fill out some personal info so you can invest in HD today.
How to Open a New Account on eToro
- Click here to get started.eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
- Provide your personal details to open a new brokerage account.
- Submit your info by pressing the "Create Account" button. Get started with eToro today
Step 3: Fund your brokerage account
Now that you have finished signing up on investing apps, you can securely and quickly fund your account:
Check out the tutorial below to see the process of depositing funds into your brokerage account.
Step 4: Analyze Home Depot stock
After you have identified the best place to buy Home Depot stock, it's absolutely critical to evaluate their stock prior to buying, so you can wrap your head around the risk as well as the upside.
Home Depot Metrics
HD Zen Score
WallStreetZen was built to help average investors do more accurate fundamental analysis in less time.
You can see all of the due diligence checks on HD's stock page.
What is the fair value of HD stock?
Investors use many financial metrics, analyses, models, and charts to gauge HD's intrinsic value.
Using relative valuations measures:
- HD may be overvalued based on its P/E ratio of 21.96x, relative to Home Improvement Retail industry P/E ratio of 21.25x
- HD may be undervalued based on its P/B ratio of 316x, relative to Home Improvement Retail industry P/B ratio of -43.04x
- HD may be overvalued based on its PEG ratio of 4.47x
You can do more valuation analysis on HD's stock here.
A quick look at HD Financials
Pros:
- Total HD debt is lower than 5 years ago, relative to shareholder equity.
- HD earnings of $21.69B is not sufficient to cover its interest payments.
- HD's operating cash flow of $21.17B allows it to safely service it's debt of $52.24B.
- There are more short-term assets than short-term liabilities on the HD balance sheet.
Cons:
- There are more long-term liabilities than short-term assets on the HD balance sheet.
- HD has a relatively high debt to equity ratio of 72.31.
- HD profit margin has gone down from 10.9% to 9.9% in the past year.
Is it a good time to buy Home Depot stock, according to Wall Street analysts?
Out of 19 Equities analysts who monitor HD, the consensus analyst rating on HD is a Strong Buy
It's important to keep in mind that analyst ratings are not recommendations, nor are they financial advice.
Most Recent HD Analyst Ratings
Joe Feldman, a top 1% analyst from Telsey Advisory Group maintains HD with a hold rating and raises their HD price target from $335.00 to $360.00, on Apr 1, 2024.
Seth Basham, a top 19% analyst from Wedbush maintains HD with a buy rating and raises their HD price target from $380.00 to $410.00, on Apr 1, 2024.
Wedbush's Seth Basham raised their price target on Home Depot (NYSE: HD) by 7.9% from $380 to $410 on 2024/04/01. The analyst maintained their Buy rating on the stock.
The analyst said Home Depot's acquisition of SRS Distribution, which is aligned with the company's focus on driving residential Pro sales growth, will return:
- a well-established set of customer and supplier relationships.
- knowledgeable associates.
- an extensive footprint.
- solid breadth and depth of inventory with a solid acquisition track record.
Footnotes
SRS is a distributor of roofing materials and building products.
Elizabeth Suzuki, a top 30% analyst from Bank of America maintains HD with a strong buy rating and raises their HD price target from $400.00 to $425.00, on Apr 1, 2024.
David Bellinger, a bottom 9% analyst from Mizuho initiates coverage on HD with a strong buy rating and announces their HD price target of $415.00, on Mar 19, 2024.
Max Rakhlenko, a top 32% analyst from TD Cowen maintains HD with a buy rating and raises their HD price target from $415.00 to $440.00, on Mar 4, 2024.
You can dive deeper into what analysts are forecasting on the Home Depot stock forecast page.
HD Momentum
HD Growth Metrics
Last year, HD earnings were $15.14B. Over the past 5 year, HD's earnings have gone up by 9.16% per year. This was slower than the Home Improvement Retail industry average of 17.13%.
Last year, HD revenue was $152.67B. Over the past five year, HD's revenue has grown by 7.13% per year. This was faster than the Home Improvement Retail industry average of 6.65%.
Learn more about HD's earnings and revenue performance here.
Latest Insiders Trades at HD
In the last 12 months, executives and large shareholders at HD have sold more shares than they have bought.
William D. Bastek, EVP Merchandising of HD, was the latest HD insider to sell. They sold $75,634.44 worth of HD stock on Mar 27, 2024.
Research more about who owns HD shares here.
Can I get consistent income from HD stock?
Home Depot pays a dividend of 2.56%, compared to the Home Improvement Retail industry's average dividend yield of 3.9%. If you owned $1,000 worth of HD stock, you would have been paid $25.59 last year.
Home Depot dividend payments have consistently grown over the past decade and have remained stable.
Find more info about Home Depot dividend yield and history here.
HD Social Trading Data
One of the biggest reasons eToro is our highest-rated brokerage is because of its social trading community.
Click below to learn what other investors have to say.
Step 5: Place your HD purchase
There are two primary types of orders:
- Market order: A market order is an order to buy or sell a stock at the best price on the market.
Market orders are mostly the easiest way to buy. - Limit order: A limit order allows you to buy or sell a stock at a specific price (or better).
If you want to be sure you're buying or selling at a given price, place a limit order.
Hit the Open button and your broker will place the order.
If you require additional info about buying stocks on eToro, watch the helpful video below:
Step 6: Get the latest news on your HD position
Now that you own some HD stock, you'll want to stay up-to-date on your new company.
Add HD to a watchlist to get notified of important updates regarding your HD stock.
HD Feed
How to Buy Stock in Home Depot
To reiterate, here are the 6 steps to buy stock in Home Depot:
- Figure out where to buy Home Depot stock
- Open a brokerage account
- Fund your brokerage account
- Analyze Home Depot stock
- Place your HD purchase
- Get the latest news on your HD position
If you require a online brokerage, eToro is our recommended venue.
Get Started with eToro TodayIf you want to monitor your investment in Home Depot, click the button below.
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