Based on the provided data and recent market activity, here's a comprehensive analysis of Home Depot (HD) stock:
Technical Analysis
The stock is showing bearish momentum in the short term, with the price declining from $396.4 to $385.3 on February 21, 2025, representing a -2.37% drop. The stock has formed a bearish pattern with increasing selling pressure.
Fundamental Analysis
Key financial metrics show:
- Revenue: $152.67B
- Net Income: $15.14B
- Net Margin: 9.92%
- ROE: 1162.16%
- Current Ratio: 1.35
Valuation metrics indicate:
- P/E: 23.51x
- EV/EBITDA: 15.80x
- P/S: 2.33x
- Dividend Yield: 2.35%
Recent Business Performance & Outlook
According to recent reports, Home Depot has been facing challenges due to:
- High interest rates affecting the real estate market
- Slower consumer spending on big-ticket items
- Reduced home sales activity
However, positive factors include:
- Market cap of $408.8B
- YTD performance of +6.4% in 2025, outperforming S&P 500's 3.1%
- Strong analyst consensus with 26 "Strong Buy" ratings out of 36 analysts
Business Segments
The company's revenue distribution:
- Building Materials: 37.36%
- Décor: 32.94%
- Hardlines: 29.70%
Recommendation
SELL. The current technical indicators suggest bearish momentum, with the stock trading below key support levels. While fundamentals remain solid and analyst sentiment is positive, the near-term headwinds from high interest rates and housing market slowdown could continue to pressure the stock. The current price of $385.3 is approaching the fibonacci support level of $381.08, and breaking below this could trigger further selling.