2024-04-30 08:01:50 ET
Summary
- Despite recent corrections HD stock has suffered, I would not recommend bottom-fishing attempts yet.
- Several technical signs indicate further downside potential in the near term.
- On the fundamental side, the stock is trading at a high valuation multiple.
- The valuation risks are compounded by challenges such as softened customer transactions and inventory levels.
HD stock has not found bottom yet
Stock prices of Home Depot, Inc. ( HD ) have suffered large corrections recently, falling from a peak of ~$395 to the current level of $335. As such, potential investors may feel tempted to do some bottom fishing here. However, I would not recommend such attempts under current conditions. I see both technical and fundamental signs that indicate its stock prices have not found a bottom yet....
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Home Depot: Don't Buy The Recent Dip (Technical Analysis)