Home Depot's Debt Remains Stable Despite Housing Slowdown

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About: The Home Depot, Inc. (HD), Includes: LOW
by: MF Capital
This article is exclusive for subscribers.
MF Capital
Value, Growth, event-driven
Summary

Home improvement retailers haven't historically been strongly correlated to new housing starts.

Home Depot has performed strongly throughout previous economic cycles.

Home Depot's financials stand very strong currently and combined with fundamentals offer strong support for their current debt obligations.

Investment Thesis

Home Depot (HD) remains a financially stable company that is resistant to economic cycles. Their performance has been historically uncorrelated to housing starts and therefore, in my opinion, will continue to