Home Depot: Overvalued And Losing Momentum

Summary:

• Home Depot’s financial and technical indicators suggest the stock is overvalued, with declining momentum and volume, indicating potential downside risk.
• Despite revenue growth and steady dividends, HD’s shift towards professional clients introduces new risks and economic sensitivity.
• Valuation metrics like Forward P/E and EV/Sales show HD trading at a premium compared to historical averages and industry peers.
• Technical analysis indicates limited support at $359, with a potential drop to $330, justifying a “sell” recommendation for HD.

Despite being one of the most well-known brands in the home improvement industry, according to recent events, Home Depot (NYSE:HD) (NEOE:HD:CA) may not be as reliable as its reputation indicates. There are many negative points in the company’s valuation and technical

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