Home Depot Negative Outlook

24 days ago

"the last one is Home Depot, which I actually shorted Home Depot back in 2022. I'm not a big fan of the company in general, especially as everything is transitioning online for the next 5 to 10 years. I think it's going to be disrupted ultimately and fast delivery. But Home Depot is down 11% over the last year. It has really pretty much done nothing over the last 5 years. Has barely up 29%. So, it has not been, you could say, doing its best. Now looking at the average revenue growth over the last few years and given the current valuation at 26 times forward earnings, I believe Home Depot is the least attractive of them."

The speaker expresses a bearish view on Home Depot, noting that its performance has been lackluster relative to other stocks. He points out that the company, which he previously shorted, is facing disruption from the online transition and weak market growth prospects. Additionally, he criticizes its high valuation multiples in the context of modest growth expectations.

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