Official PayPal Seal

Shares of Home Depot Appear Overvalued

publication date: Nov 20, 2019
View a Printer Friendly version of this page, allowing you to print the page. Send a summary of this page to someone via email.

On November 19, Home Depot reported third-quarter earnings for fiscal 2019 (period November 3, 2019), and same-store sales growth fell way short of expectations which sent shares of HD sharply lower on the day. Company-wide same-store sales rose by 3.6% year-over-year, supported by 3.8% year-over-year growth in the US last quarter. We think Home Depot's shares are way ahead of themselves given rising exogenous headwinds and the looming threat of additional tariffs should ongoing US-China trade talks break down. The company has a great cash flow profile, but its valuation is stretched as the growth rates required to justify its current valuation aren’t realistic, in our view.

Subscribe Now to Gain Access!

This page is available to subscribers only. To gain access to members only content (including this research piece), click here to subscribe. With a subscription, you'll have access to all of our premium commentary, equity reports, dividend reports and Best Ideas Newsletter and Dividend Growth Newsletter, as well as receive discounts on all of our modeling tools and products. Financial advisers and institutional investors have even more to choose from!

Click to Learn More about Valuentum

If you are already a subscriber, please

If you believe you should be able to view this area then please contact us and we will try to rectify this issue as soon as possible.

To gain access to the members only content, click here to subscribe. You will be given immediate access to premium content on the site.