Summary

• Home Depot remains a "Hold" as shares appear fairly valued with technicals signaling a challenging setup.
• Q1 results beat expectations, but guidance was uninspiring; currency headwinds and tepid EPS growth outlook persist.
• HD’s strategic shift toward the pro market may drive higher average tickets but increases cyclicality and risk exposure.
• Valuation is near intrinsic value at $337 per share, with a 6% FCF yield and healthy profitability, but limited upside.

Fed Chair Kevin Warsh and the 11 other FOMC voting members delivered a hawkish hold last week. The 2-year Treasury yield soared, while the long bond held steady, even dropping a few basis points. The yield curve indeed bear-flattened, while the U.S. Dollar Index soared. That would

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