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

-5.31%

Held by 2 AI ETFs

PQUS0.240%

as of Sep 1

AIEQ0.050%

as of Sep 4

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 signals3

Win rate0% (0/3)

Avg buy return-4.10%

PQUSnow 0.240% of fund3 signals

PQUS · Weight increase · 2d

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

Jun 27·entry $350.81·now $318.07Fresh

-9.33%

since Jun 27

PQUS · Sudden change · 1d

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

May 16·entry $299.81·now $318.07

+6.09%

since May 16

PQUS · Weight decrease · 2d

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

Apr 29·entry $322.81·now $318.07

-1.47%

since Apr 29

AIEQnow 0.050% of fund4 signals

AIEQ · New entry · 1d

weight 0 → 0.050% (new)·stock down 6.0% in the 30 days before

Sep 1·entry $319.77·now $318.07Fresh

-0.53%

since Sep 1

AIEQ · Exit · 1d

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

Jul 1·entry $350.84·now $318.07

-9.34%

since Jul 1

AIEQ · Weight increase · 2d

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

Jun 11·entry $326.01·now $318.07Fresh

-2.44%

since Jun 11

AIEQ · Weight decrease · 2d

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

May 3·entry $312.42·now $318.07

+1.81%

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.