The Home Depot, Inc. (NYSE:HD)

overvalued

To fast of a run up based on speculation of housing recovery. Earnings can't justify current price. Be prepared for a huge sell off following earnings May 21, 2013.

HD has been a great play on real estate growth + is now able to leverage off its 12% remaining staKe in HD supply which is now going through an IPO. This should give some immediate OOMPH.

new round of alphadividend picks:
underperform shorts on the 5 tickers:
hd,vz,sbux,t,mo

and outperform buys on the 5 tickers:
atri,nhc,bg,zeus,ff

people need to start buying homes, time to fix up, too much pent up saving.

Market leader, consistently outperforms competitors in comp sales, roi, and roa. Well managed with a proven track record of executing strategies.

housing has recovered, but as always, wallstreet is just a game of extremes, to the upside, to the downside, back to the upside

home depot - lots more building needed
div=2.2
Total Debt / Equity   0.61
Price Earnings   23.40
Price/Sales   1.41
Price/Book   5.92
Price/Cash Flow   17.60

I may be crazy to get in after the way this stock has run up, but I think there is still demand for new housing and I know lots of folks who put off projects that are starting to do home improvements, me included.

They have beaten earnings for the past 10 quarters handidly, and with the better than expected housing data out they should beat earnings expectations on Feb 25.

Very efficient. Has gained market share during the downturn.

People are starting to spend on home improvements again.

HD is a solid firm with enduring competitive advantages. In Buffett parlance, it has a wide economic moat.
I rate the firm's fundamentals (financial heath + predictabilty of its business) at 90/100 (A-).
The firm's managers are excellent stewards of investor-owner capital.
All of this is reflected in the stock price.
HD stock is trading well above my fair value estimate of $50.25.
Price to FV ratio is 1.23: a negative 23% margin of safety.
Over the next 5 years, I forecast that the stock's ROI will underperform the expected market ROI of 7.7%. My forecast ROI for HD stock is 2.8% a year. ROI is comprised of 1.9% current dividend yield, 4.9% profit growth and 4.0% multiple contraction.
In my view, HD stock is a sell at current levels.
Short-term momentum and market psychology may drive the stock price slightly higher in the very short-term. In the long run, however, the voting machine will become a weighing machine and, in my opionion, the stock price will revert to its fair value.

residential coming back

Dang,my roof is old and It needs new wood! said Bob when he woke up. Bob like most Americans is a normal guy, middle class, family,employed and has insurance. Nobody,in the middle class is going to go buy another house. Especially now with weak jobs and democrats planning more income taxes and republicans wanting to cut the Medicare you have been paying for 20 years. He grabs the truck drives around the corner to this company and buys new wood, hammers, paint, and some beef jerky with a hunting magazine. As long as 99 percent of Americans don't live in a mansion and have horses in the Olympics this company would do good. Home Depot review

Need home products for the recovery.

HD

Not to sure about this. But its on my good side

Extensive damage from Hurricane Sandy on the east coast is going to cause a lot of rebuilding along with new housing across the nation.