Value
5.9/10data confidence 100%| Component | Sub-score |
|---|---|
| P/E | 5.9 |
| P/S | 9.1 |
| EV/EBITDA | 3.0 |
| Fwd P/E | 6.6 |
| PEG | 4.7 |
| Analyst target | 6.0 |
- ▸Forward P/E: 19.3x
- ▸PEG: 1.75
HD · Why this verdict
Why Home Depot, Inc. (The) (HD) is rated SELL
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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VerdictSELL
Overall score4.8/10
ConfidenceHIGH
MacroRISK_OFF
Per-dimension breakdown
Quality
5.7/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 10.0 |
| ROA | 8.3 |
| Gross margin | 2.6 |
| Op margin | 4.8 |
| Net margin | 4.2 |
| Current ratio | 4.1 |
| FCF quality | 5.5 |
| Moat | 4.9 |
| Piotroski F | 6.7 |
- ▸Excellent ROE: 128%
- ▸Earnings quality warning: 72% FCF/NI
- ▸No competitive moat
Growth
2.4/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 3.7 |
| EPS growth | 1.1 |
Momentum
4.3/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 3.6 |
| MACD | 10.0 |
| OBV | 1.6 |
| MA position | 4.0 |
| Volume | 2.1 |
- ▸Volume distribution (falling OBV)
- ▸Below 200-MA, MA slope -2.4%/30d — confirmed downtrend
Sentiment
7.0/10data confidence 100%| Component | Sub-score |
|---|---|
| LLM sentiment | 5.9 |
| Analyst rating | 7.5 |
| Price target | 7.6 |
Insider
5.0/10data confidence 50%| Component | Sub-score |
|---|---|
| materiality | 5.0 |
| holder change | 5.1 |
- ▸No net insider activity — $0 (0.000% of mkt cap)
Peer rank
4.0/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 1.7 |
| quality rank | 5.8 |
| growth rank | 3.3 |
Technical
4.1/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 4.3 |
| support resistance | 3.3 |
| 52w position | 4.8 |
Risk (lower is worse)
5.2/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 9.3 |
| days to cover | 7.9 |
| volatility | 5.8 |
| put call | 2.1 |
| implied vol | 6.2 |
| max pain risk | 3.0 |
| beta | 7.2 |
| debt equity | 0.4 |
- ▸Elevated put/call: 1.69
- ▸Above max pain $220
Catalyst
5.1/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 3.3 |
| earnings timing | 5.0 |
| surprise avg | 3.2 |
| dividend safety | 6.0 |
| news activity | 8.0 |
- ▸Earnings concerns: 2B/2M
- ▸Dividend: 300.0%
How the verdict was assembled
Engine trigger
Multiple concerning factors. Consider reducing position.
Engine technical detail
verdict_path:
L4:PATH_F_SELLPassed (6)
- INSIDER:OK
- 8K:CLEAN
- NEWS_EVENTS:NONE_RECENT
- EARNINGS_PROXIMITY:71d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (3)
- MOMENTUM:4.3<4.5
- ASYMMETRY:1.4<1.5@spot
- DEATH_CROSS:HARD_BLOCK
Warning (0)
none
Reward-to-Risk
1.36
Upside
+10.0%
Downside
7.3%
Sizing output
AVOID
SetupRECOVERY — Death cross but MACD improving, RSI 64
EdgeNO_EDGE — No clear edge identified
SuitabilityMODERATE — Balanced profile
Investment implication
The F-path SELL output reflects an overall score of 1.8 below the 5.6 soft trigger — multiple weakening dimensions accumulated rather than a single hard-floor breach. The strongest dimension ( Sentiment at 7.0) was not enough to lift the adjusted overall above the threshold. Co-occurring failed gates ( MOMENTUM:4.3<4.5, ASYMMETRY:1.4<1.5@spot, DEATH_CROSS:HARD_BLOCK) reinforce the read. Current asymmetry R:R is 1.36 — supplementary context, not the trigger for this path.
The strongest dimensions are Sentiment at 7.0, Value at 5.9, and Quality at 5.7; the weakest are Growth at 2.4, Peer rank at 4.0, and Technical at 4.1. The V9 engine flagged 3 failed gates, producing an asymmetric reward-to-risk of 1.36 and an engine sizing output of AVOID.