Probably not, as foretold by the price action in Home Depot’s stock of late (1,400bps of underperformance over three months) alongside a slew of negative consumer warnings across housing names. Homebuilders experienced their worst day in months today, with the XHB falling 3% on no news of note and despite interest rates moving modestly lower on the day.
While the Home Depot forward earnings multiple remains in a tight range, we are back to ‘lows’ not seen in over a year:
