I Know First Review

The Home Depot, Inc. (The Home Depot) is a home improvement retailer. The Home Depot stores sell an assortment of building materials, home improvement products, lawn, garden products and provides services as well. The Home Depot stores average approximately 104,000 square feet of enclosed space, with approximately 24,000 additional square feet of outside garden area.

I Know First wrote a Seeking Alpha Article about Home Depot on July 17th, 2015 in accordance to the algorithmic signal. The article claimed that their stock is considered bullish because of its rising revenues which beat the industry average and its strong ROE. Also the recent strengthening of the housing market, due in part to rock-bottom interest rates, has unquestionably helped boost share prices. Since that time, the stock price has increased 15.00%, as the article correctly predicted.

Many factors affected 2015 for Home Depot. One that was included was a rise in the housing market that was outside of management’s control. Capital spending on private residential buildings rose to a $620 billion in the third quarter of 2015, this is a huge increase compared to $555 billion a year earlier.

But the company is not just at the right place and time. The company is growing at a higher pace than its competitor Lowe’s (NYSE:LOW), most recently posting 7.3% higher comps against its smaller rival’s 5% uptick.

Home Depot’s operating margin has more than doubled since the bottom of the housing market crisis while Lowe’s it’s still in single numbers.

Their stock has enjoyed an extremely good 2015, it went up 27% for the year.

Home Depot has shown strong internal finances and operations. Expenses have been going up at a slower rate than revenue growth, this has allowed Home Depot to expand its margins and grow its profitability. The company has decided to benefit investors after this improvement. They boosted their dividend by double-digit percentages in 2015, and they are expected to do the same in this year. During 2015,  its stock kept hitting all-time highs. This year could be their best so far.

Forecast

I Know First supplies financial services, mainly through stock forecasts via their predictive algorithm. The algorithm incorporates a 15-year database and utilizes it to predict the flow of money across 2000 markets. The self-learning algorithm uses artificial intelligence, predictive models based on artificial neural networks, and genetic algorithms to predict money movements within various markets.

I Know First published a bullish forecast on Home Depot. The three-month and one-year forecasts for Home Depot are included. The 3 Month period has a signal of 24.81 and predictability of 0.27 and for the 1 Year period has a signal of 66.42 and a higher predictability of 0.41 for the same time horizon.

Previously I Know First’s Algorithm predicted the performance of Home Depot for the period of 8^th of September to the 8^th of December. As we can see in the 3-month predictions IKF had a positive one. The stock went up 17.49% during this period. The overall package performed well, bringing returns to investors taking evenly investments in each of the positions recommended by the algorithm and managed to get 15.74% return in 3 months. If we compare it to the S&P500 performance of 7.41% the I Know First Average performed much better.