Home Depot: Way More Risks Than Reward


  • Home Depot has had a strong track record of success.
  • However, the market may be focusing too much on the rear view mirror, with risks not fully priced in.
  • The stock is prohibitively expensive, and I highlight a better alternative.

Home Depot Building Exterior

M. Suhail

Home Depot (NYSE:HD) is a stock that looks appealing based on price action alone. For one thing, the stock has fallen by 21% over the past year and sits well below its 52-week high of $418. This may lead some investors

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HD Total Return (Seeking Alpha)

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Prime Rate (FRED Economic Data)

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HD Valuation (FAST Graphs)

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LOW Valuation (FAST Graphs)

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I am not an investment advisor. This article is for informational purposes and does not constitute as financial advice. Readers are encouraged and expected to perform due diligence and draw their own conclusions prior to making any investment decisions.

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