The Black Swan Theory: The Home Depot, Inc. (HD), PayPal Holdings, Inc. (PYPL)

The Home Depot, Inc. (NYSE:HD) has its shares plummet by -1.8% or $4 from its all-time high of $222.65. The drop in the price of the shares saw it stand at $218.65 per share. HD has been trading at a low of $158.09 over the past one year but it surged by 38.31% or $60.56 to reach the $218.65 mark. Following the massive rise in stock price, HD received more attention from investors and analysts. On Monday, the stock plunged by 0.54%, which caused investors and analysts to excite about it. Following the plunge in price, the HD beta stands at 1.06, implying that its volatility level has gone up by -0.0600000000000001 ahead of the general market. A look at the stock’s 200-day moving average shows that it is 13.66% above while its 50-day moving average shows that it is currently 3.46% above. Compared to 1.97% average daily volatility of past month, the stock’s average volatility for this week has decreased by -0.04 as the volatility level currently stands at 1.93%.

Over the past seven days, the stock has witnessed a price surge by 5.15%. This massive rise in stock price has caught the attention of both investors and market traders. The stock has performed excellently over the past 52 weeks, rising by 9.24% during that time frame and is now up by 27.26% since this point this year. HD has surged by 0.8% over the past 30 days, with its equity price gaining% of its value over the past ninety days. These figures add up to see the stock record a growth of 16.12% over the past six months.

Market analysts from research firms still remain bullish about the short-term performance of HD. Most of them are of the view that the stock would be able to reach $223.75 over the next 12 months. If that happens, then the stock would witness a 2.33% rise in its price and that would see the stock’s market cap hit an astonishing $251 Billion. Analysts view this stock as a bullish at the moment as its average rating is 2. According to Reuters, most of the 35 analysts covering the stock at the moment believe it is a Buy. 13 of them rated HD as a Hold while 22 of them either rated it as a Buy or a Strong Buy. However, 0 of them advised investors to sell the stock if they have it or shouldn’t buy it if they don’t possess any.

The stock’s technical analysis reveals that its 14-day Relative Strength Index (RSI) is currently in a neutral position as it was able to attain 59.93 points. Over the past three months, the trading volume has dropped massively, by roughly ????118.45%???, with the trading volume now standing at 3648232 shares. The decrease of -341768 shares in trading volume shows that traders and investors have shown less interest in the stock over the past few weeks. During that trading session, the average trading volume of HD was 3990000 shares, which is more than 0.91 times higher than its usual trading volume.

Analysts have set a 1-year price target for this stock, with most of them expecting it to reach $128.46/share over the next 12 months. If that happens, then PYPL would witness a 19.32% rise from its current price.Not all analysts believe it would hit that target though, as some of them expect it to trade lower, as low as $97 per share. In the same breath, one analyst believes that the stock is set to soar even higher than expected, as the price target was set at $146.

The stock is currently neutral as its Stochastic Oscillator (%D) is at 75.3%, which implies that a stability in price will be experienced for a while. Its shares P/S ratio is above the 7.47 industry average and above the 2.47 by the wider market, as PYPL’s P/S ratio currently stands at 7.95. The stock’s estimated price-earnings (P/E) multiple is 30.46 which is also below the 12-month price-earnings (P/E) which stands at 51.39. PayPal Holdings, Inc. has experienced a rise in its earnings, recording an increase rate of 17.1% in each quarter over the past five years.

The stock has an average rating of 1.9 which means that it has been rated as a Buyby most analysts. The stock is being covered by 42 analysts who gave a consensus recommendation of 1.9 which implies that it is currently in a bull/bear situation. Reuters looked into analysts covering PayPal Holdings, Inc., and 11 of them believe that the stock is a Hold at the moment. 31 of the analysts rated it as a Buy or a Strong Buy while the remaining analysts (0) rated it as a sell at the moment.