HD · Home Depot, Inc. (The)

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The Home Depot, Inc. operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also offers installation services for flooring, water heaters, baths, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, and windows.

Close · 3M

-5.80%

Held by 1 AI ETF

PQUS0.180%

as of Jul 21

Signal performance

Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.

Buy signals2

Win rate50% (1/2)

Avg buy return-1.46%

PQUSnow 0.180% of fund3 signals

PQUS · Weight increase · 2d

Home Depot, priced at $348.86, currently sits at 82% of its 52-week high, having posted a 14.6% return over the last 30 days following earlier 90-day and one-year declines. This recent price recovery and position within the Consumer Discretionary sector likely prompted the AI ranking system governing PQUS to increase its weighting in HD. The Pictet Asset Management fund, which rebalances periodically, consecutively raised its HD exposure to 0.17% then 0.18% on June 26th and 27th, suggesting the AI found new appeal in factors like the company's 113.3% ROE and 2.23% revenue growth. Such a measured adjustment aligns with PQUS's strategy of applying sector-balance and concentration rules to its US large-cap universe, even as a relatively newer offering.

weight 0.160% → 0.180% (+0.020 pp)·stock up 9.8% in the 30 days before

Jun 27·entry $350.81·now $333.04Fresh

-5.07%

since Jun 27

PQUS · Sudden change · 1d

HD's financial summary reveals a PER of 20.93 and PBR of 29.38, alongside 3.24% revenue growth and a high 130.02% ROE, figures actively evaluated by PQUS's AI ranking system for US large-caps. The significant 40% reduction in weight on May 16th, from 0.82% to 0.49%, aligns with HD's sustained price decline, currently at $297.51, which is 70% of its 52-week high. This suggests the AI’s periodic rebalancing within the US large-cap universe, consistent with its measured turnover style, adjusted HD's ranking due to its -8.9% 30-day return, prompting a reduction in allocation despite existing sector-balance and concentration rules.

weight 0.820% → 0.490% (-0.330 pp)·stock down 11.8% in the 30 days before

May 16·entry $299.81·now $333.04

+11.08%

since May 16

PQUS · Weight decrease · 2d

The AI ETF is likely decreasing its Home Depot weight due to the stock's elevated PBR and PER ratios, suggesting a perceived overvaluation given its modest 3.24% revenue growth, despite the impressive ROE. For retail investors, this consistent underweighting by an AI fund serves as a prompt to critically evaluate if a stock's current price and high valuation metrics are justified by its long-term growth prospects rather than solely focusing on strong past performance or single positive indicators.

weight 0.920% → 0.890% (-0.030 pp)·stock down 0.2% in the 30 days before

Apr 29·entry $322.81·now $333.04

+3.17%

since Apr 29

AIEQno longer held3 signals

AIEQ · Exit · 1d

Home Depot's stock was trading at $350.84, representing 83% of its 52-week high, following a significant 16.0% return over the last 30 days, contrasting with a more muted 1.1% gain for the full year. Amplify's AIEQ, managed by IBM Watson NLP with a daily rebalancing and high-turnover strategy, removed the position on July 1, 2026. The fund’s fundamentals and sentiment hybrid approach, which processes vast amounts of data, likely indicated that despite the recent price ascent, the company's valuation metrics—such as a PER of 25.25 and a PBR of 29.38—coupled with a revenue growth of 2.23%, no longer warranted continued inclusion. EquBot's risk overlay likely factored in the recent swift rally, adjusting the portfolio based on its daily ranking and identifying other opportunities with more favorable risk-reward profiles.

weight 0.250% → 0 (exited)·stock up 12.9% in the 30 days before

Jul 1·entry $350.84·now $333.04

-5.07%

since Jul 1

AIEQ · Weight increase · 2d

Home Depot's financial figures, including a 22.86 PER, 29.38 PBR, 2.23% revenue growth, and particularly a 113.3% ROE, align with AIEQ's fundamentals-driven selection criteria, highlighting its robust profitability despite moderate top-line expansion. IBM Watson's NLP engine likely identified positive sentiment shifts or undervalued signals from news, filings, and social posts related to HD during a period where the stock had seen a -14.5% 90-day return and was trading at 77% of its 52-week high. The consecutive weight increases in AIEQ for HD, culminating in a 0.24% allocation on June 11th, suggest EquBot's risk overlay integrated these insights, perceiving an attractive entry point or strengthening outlook after the significant price decline.

weight 0.220% → 0.240% (+0.020 pp)·stock up 5.0% in the 30 days before

Jun 11·entry $326.01·now $333.04Drifting

+2.16%

since Jun 11

AIEQ · Weight decrease · 2d

The AI ETF likely initiated consecutive weight decreases in HD due to its significantly high P/B and P/E ratios, indicating overvaluation relative to its moderate revenue growth. Despite an impressive ROE, the AI probably identified that the stock's market price was detached from its underlying book value and growth prospects, signaling limited future upside or increased risk. For retail investors, this serves as a reminder to scrutinize valuation metrics like P/B and P/E in conjunction with growth, rather than relying solely on efficiency ratios, especially for mature companies in cyclical sectors. This AI action suggests caution when a stock's price appears to outpace its fundamental value and growth potential.

weight 0.750% → 0.240% (-0.510 pp)·stock down 1.7% in the 30 days before

May 3·entry $312.42·now $333.04

+6.60%

since May 3

Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.

Buffett-style framework

Fails the frameworkas of Jun 28

The AI ETF PQUS shows a recent trend of increasing its weight in Home Depot, signaling a positive outlook or accumulation. This contrasts with the framework's 'Fail' verdict, which is primarily driven by concerns regarding the sustainability of financial health and the current valuation's lack of a margin of safety.

Circle of CompetenceThe home improvement retail industry features stable, understandable unit economics, allowing for reasonable projection of ten-year cash flows.
Economic MoatHome Depot benefits from powerful brand recognition, extensive scale in purchasing and logistics, and a wide store footprint, which combine to form a durable economic moat.
ManagementThe provided information is insufficient to assess management's candor, capital allocation discipline, or personal stake in the company.
Financial HealthWhile the reported ROE of 113.3% is numerically high, the absence of 10-year historical data, operating margins, debt details, and owner earnings specifics prevents confirmation of sustainable financial health free from undue leverage.
Margin of SafetyWith a PER of 23.86 on 2.23% revenue growth, the current valuation multiples suggest the stock is trading at a full or premium price, indicating an absence of a clear margin of safety.

Home Depot operates within a predictable circle of competence and possesses a strong economic moat. However, the available financial data does not provide sufficient context to confirm sustainable financial health and an extremely high reported ROE raises questions about undue leverage. Furthermore, the company's current valuation multiples suggest a full price, leaving no discernible margin of safety for a conservative investor.

Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.