Home Depot Inc (HD)
The Home Depot, Inc., commonly known as Home Depot, is the largest home improvement retailer in the United States, supplying tools, construction products, and services. The company is headquartered in incorporated Cobb County, Georgia, with an Atlanta mailing address.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is increasing.
- The growth rate of the primary trend is 23.64% per annum.
- HD price at the close of March 31, 2025 was $366.49 and was lower than the bottom border of the primary price channel by $11.54 (3.05%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 63.84% per annum.
- HD price at the close of March 31, 2025 was higher than the top border of the secondary price channel by $1.03 (0.28%). This indicates a possible reversal in the secondary trend direction.
- The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.
Linear Regression Model
Model equation:
Yi = α + β × Xi + εi
Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)
Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)
where:
i - observation number
Yi - natural logarithm of HD price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e
Primary Trend
Start date: February 21, 2023
End date: February 20, 2025
a = 4.9822
b = 0.0006
s = 0.0541
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0006) – 1
= 23.64%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0541) – 1
= 24.18%
February 21, 2023 calculations
Top border of price channel:
Exp(Y727)
= Exp(a + b × X727 + 2 × s)
= Exp(a + b × 1,056 + 2 × s)
= Exp(4.9822 + 0.0006 × 1,056 + 2 × 0.0541)
= Exp(5.7045)
= $300.20
Bottom border of price channel:
Exp(Y727)
= Exp(a + b × X727 – 2 × s)
= Exp(a + b × 1,056 – 2 × s)
= Exp(4.9822 + 0.0006 × 1,056 – 2 × 0.0541)
= Exp(5.4879)
= $241.74
February 20, 2025 calculations
Top border of price channel:
Exp(Y1,228)
= Exp(a + b × X1,228 + 2 × s)
= Exp(a + b × 1,786 + 2 × s)
= Exp(4.9822 + 0.0006 × 1,786 + 2 × 0.0541)
= Exp(6.1289)
= $458.93
Bottom border of price channel:
Exp(Y1,228)
= Exp(a + b × X1,228 – 2 × s)
= Exp(a + b × 1,786 – 2 × s)
= Exp(4.9822 + 0.0006 × 1,786 – 2 × 0.0541)
= Exp(5.9123)
= $369.56
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 23.64% per annum.
- HD price at the close of March 31, 2025 was $366.49 and was lower than the bottom border of the primary price channel by $11.54 (3.05%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: January 21, 2025
End date: March 28, 2025
a = 10.9440
b = -0.0028
s = 0.0217
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0028) – 1
= -63.84%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0217) – 1
= 9.06%
January 21, 2025 calculations
Top border of price channel:
Exp(Y1,207)
= Exp(a + b × X1,207 + 2 × s)
= Exp(a + b × 1,756 + 2 × s)
= Exp(10.9440 + -0.0028 × 1,756 + 2 × 0.0217)
= Exp(6.0935)
= $442.95
Bottom border of price channel:
Exp(Y1,207)
= Exp(a + b × X1,207 – 2 × s)
= Exp(a + b × 1,756 – 2 × s)
= Exp(10.9440 + -0.0028 × 1,756 – 2 × 0.0217)
= Exp(6.0067)
= $406.15
March 28, 2025 calculations
Top border of price channel:
Exp(Y1,254)
= Exp(a + b × X1,254 + 2 × s)
= Exp(a + b × 1,822 + 2 × s)
= Exp(10.9440 + -0.0028 × 1,822 + 2 × 0.0217)
= Exp(5.9095)
= $368.53
Bottom border of price channel:
Exp(Y1,254)
= Exp(a + b × X1,254 – 2 × s)
= Exp(a + b × 1,822 – 2 × s)
= Exp(10.9440 + -0.0028 × 1,822 – 2 × 0.0217)
= Exp(5.8228)
= $337.91
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 63.84% per annum.
- HD price at the close of March 31, 2025 was higher than the top border of the secondary price channel by $1.03 (0.28%). This indicates a possible reversal in the secondary trend direction.