HD stock verdict - Avoid
HD
Home Depot, Inc. (The)
AVOIDConsumer Cyclical
$338.86
Fundamentals below bar
$338.86
Heavy$270.15Buy$328.04Fair$385.93Exit$424.52
FUNDAMENTAL38
TECHNICAL47
TRUST SCORE
100High
confidence in this read — data completeness, earnings quality & coverage
Neutral · EMA20 343.01 · EMA50 338.56 · EMA200 346.78 · RSI 47.8 · MACD below signal
PROS
- Strong return on equity of 105.0% (TTM)
- Balance sheet holds net cash (cash exceeds total debt)
CONS
- Rich for its growth rate (PEG 4.4)
- High leverage — debt-to-equity of 4.55
- TTM EPS fell 4.5% year-over-year
✳ Pros and cons are machine-generated from the latest fundamentals and technicals.
EARNINGS QUALITY · we check the accounting so you don't have to
✓Operating cash flow is 115% of net income — profit is backed by real cash
✓Low accruals — reported profit tracks the cash actually generated
✓Receivables growing in line with sales
Analysis as of 2026-08-16 · price live, fundamentals from latest filings
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FAQ
Why is HD rated Avoid?
HD (Home Depot, Inc. (The)) is rated Avoid because the model combines fundamentals, price action, and earnings-quality checks. The current signal is Fundamentals below bar. Strong return on equity of 105.0% (TTM) and Balance sheet holds net cash (cash exceeds total debt)
Is HD overvalued right now?
HD is trading at $338.86 versus an estimated fair value of $385.93. That puts the stock in avoid territory on this framework. Rich for its growth rate (PEG 4.4) and High leverage — debt-to-equity of 4.55
What should I watch before acting on HD?
Watch the trust score of 100, the earnings-quality checks, and any red flags. Rich for its growth rate (PEG 4.4) and High leverage — debt-to-equity of 4.55