Home Depot's $1.53B Volume Ranks 45th Amid Mixed Analyst Optimism and Rising Short Interest

On August 15, 2025, The Home Depot (HD) traded with a daily volume of $1.53 billion, ranking 45th in market activity. The stock closed down 0.23%, reflecting modest pressure in a mixed retail sector. Analyst consensus remains cautiously optimistic, with 19 buy ratings and 6 holds among 25 total recommendations, though no sell ratings are currently assigned. Institutional ownership remains robust at 70.86%, signaling sustained confidence from large investors.

Valuation metrics highlight mixed signals. The stock’s P/E ratio of 27.19 trails the broader market average of 28.73 but exceeds the 26.30 sector average for retail/wholesale companies. A PEG ratio of 3.87 suggests potential overvaluation relative to earnings growth projections of 3.11% for the next fiscal year. Meanwhile, the 2.26% dividend yield remains a draw, with payout ratios at 62.42% deemed sustainable by analysts.

Short interest metrics indicate a 0.28% rise in the past month, pushing the short float to 1.08% and the days-to-cover ratio to 3.2. This suggests a slight decline in investor sentiment, though the ratio remains within normal ranges. ESG factors present challenges, with an environmental score of -1.92 and recent insider trading activity showing net selling of $2.95 million in the past three months.

Backtesting of a 1-day holding strategy for the top 500 volume stocks from 2022 to present showed a total return of 37.61% with an average daily gain of 0.98%. While this approach demonstrated stability, returns were described as "moderate," underscoring the conservative nature of volume-based trading in this period.