Think Home Depot Stock Is Expensive? This Chart Might Change Your Mind

Trading at slightly less than 26 times expected earnings for 2024, Home Depot (NYSE: HD) does not look like a good value stock. Still, no meaningful discussion about its current earnings trajectory and valuation can occur without considering how the state of the housing market and the interest rate cycle will impact its business. So let's dive in.The key external metric for investors to watch when they're weighing the outlook for this stock is existing home sales. Homeowners tend to refurbish their homes immediately before and after they buy or sell them. For this reason, the trends in the company's earnings -- measured here using earnings before interest and taxation, or EBIT -- are led by the trends in existing home sales.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool