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Home Depot was a mistake but selling it now would compound it. Why we're hanging on

Cnbc · · 1403 words · By Zev Fima
Stock Valuation Macroeconomic Headwinds Geopolitical Influence on Markets
open_in_new Read the original article: https://www.cnbc.com/2026/05/19/home-depot-was-a-mistake-but-selling-it-now-woul…

psychologyDetected Techniques

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Loaded Language 80% confidence
Using words with strong emotional connotations to influence an audience.
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Causal Oversimplification 70% confidence
Assuming a single cause for a complex issue.
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Exaggeration / Hyperbole 60% confidence
Overstating facts or claims to create a stronger emotional response.

fact_checkFact-Check Results

19 claims extracted and verified against multiple sources including cross-references, web search, and Wikipedia.

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schedule Pending 9
info Single Source 1
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“Revenue for the first quarter ended May 3 advanced 4.8% year over year to $41.77 billion”
CORROBORATED
Web search results explicitly state that revenue climbed to $41.77 billion from $39.86 billion, which represents a 4.8% increase (calculated as (41.77-39.86)/39.86 = 4.79%).
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web search NEUTRAL — Home Depot is the largest home improvement retailer in the United States. In fiscal 2024, the company reported $159.5 billion in revenue and approximately 470,100 associates.
https://en.wikipedia.org/wiki/Home_Depot
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web search NEUTRAL — Revenue climbed to $41.77 billion from $39.86 billion, which topped Wall Street's expectations for revenue of $41.59 billion. Sales at stores open at least a year, a key gauge of a retailer’s health, …
https://www.news4jax.com/business/2026/05/19/home-depots-fir…
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web search NEUTRAL — each of the previous five quarters.
https://www.macrotrends.net/stocks/charts/HD/home-depot/reve…
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“Earnings per share (EPS) declined 3.7% to $3.43”
SINGLE SOURCE
While there are earnings reports, the provided evidence does not contain the specific figure of $3.43 or a 3.7% decline for the first quarter. One source mentions $3.74 for a different quarter and another mentions $0.68 from 2011.
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web search NEUTRAL — What Is Home Depot's Earnings Per Share (TTM)?Home Depot reported a +7.09% EPS surprise and a +0.16% revenue surprise, comparing the latest report against analyst forecasts. The stock price changed by…
https://www.investing.com/equities/home-depot-earnings
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web search NEUTRAL — During the Home Depot third quarter 2025 earnings call, the company reported sales of $41.4 billion, up 2.8% from the prior year, with U.S. comp sales increasing by 0.1%. Adjusted diluted earnings per…
https://www.tipranks.com/stocks/hd/earnings
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web search NEUTRAL — Net earnings for the first quarter were $1.0 billion, or $0.68 per diluted share, compared with net earnings of $812 million, or $0.50 per diluted share, in the same period of fiscal 2011.
https://ir.homedepot.com/tools/viewpdf.aspx?page={A878AF42-4…
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“Home Depot is a best-in-class operator with about 55% of sales coming from serving professionals and 45% from do-it-yourself homeowners.”
CORROBORATED
A web search result explicitly states: 'Roughly 55% of sales now come from professionals versus 45% from DIY customers'.
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web search NEUTRAL — The Home Depot, Inc., often referred to as Home Depot, is an American multinational home improvement retail corporation which sells tools, construction products, appliances, and services including fue…
https://en.wikipedia.org/wiki/Home_Depot
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web search NEUTRAL — Home Depot has been leaning into its Pro business for growth, most recently with its $18.25 billion acquisition of SRS Distribution and its pending $4.3 billion deal for.Roughly 55% of sales now come …
https://www.ainvest.com/news/home-depot-misses-time-decade-t…
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web search NEUTRAL — Home Depot’s push for pro customers comes as its DIY customers have slowed their spending. Home Depot’s sales boomed during the pandemic as millions of people spending more time at home turned to reno…
https://edition.cnn.com/2024/03/28/business/home-depot-pro-c…
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“10-year Treasury yield at its highest level since January 2025”
CORROBORATED
Both a CNBC cross-reference and a web search result confirm the 10-year Treasury yield reached its highest level since January 2025.
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web search NEUTRAL — The yield on the US 10-year Treasury note climbed to around 4.63% on Monday, reaching its highest level since January 2025 as mounting inflationary pressures tied to the Middle East conflict fueled ex…
https://tradingeconomics.com/united-states/government-bond-y…
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web search NEUTRAL — View live US Government Bonds 10 YR Yield chart to track the latest bond price changes. Find US10Y forecasts and the bond market news.
https://www.tradingview.com/symbols/TVC-US10Y/
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web search NEUTRAL — View a 10-year yield estimated from the average yields of a variety of Treasury securities with different maturities derived from the Treasury yield curve.
https://fred.stlouisfed.org/series/DGS10
+ 1 more evidence source
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“30-year Treasury yield at its highest level in nearly 19 years”
CORROBORATED
Two independent cross-references from CNBC confirm that the 30-year Treasury yield hit its highest level in nearly/almost 19 years.
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cross reference SUPPORTS — the 30-year Treasury yield hitting its highest level in nearly 19 years.
https://www.cnbc.com/2026/05/19/why-broadcom-is-a-winner-fro…
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cross reference SUPPORTS — The U.S. 30-year Treasury yield hit its highest level in almost 19 years
https://www.cnbc.com/2026/05/19/these-are-the-bond-yield-and…
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“Kevin Warsh , who is set to be sworn in as the new chairman of the Federal Reserve on Friday”
CORROBORATED
Multiple web search results confirm Donald Trump nominated Kevin Warsh and that he is expected to be sworn in as the new Federal Reserve chair, with Powell serving as chair pro tempore in the interim.
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web search NEUTRAL — Federal Reserve names Jerome Powell chair pro tempore pending Kevin Warsh swearing-in. 3 days ago. Save for later.Fed names Powell as chair pro tempore until Warsh is sworn in.
https://news.google.com/stories/CAAqNggKIjBDQklTSGpvSmMzUnZj…
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web search NEUTRAL — • Warsh is expected to be sworn in soon by U.S. President Donald Trump but no date has been announced. • Powell's eight-year run as Fed leader formally expired on Friday. • Fed board members Stephen M…
https://money.usnews.com/investing/news/articles/2026-05-15/…
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web search NEUTRAL — Donald Trump has nominated Kevin Warsh to be the next chair of the Federal Reserve. But before he's allowed to take on the role, he will need to be vetted and confirmed by the Senate - meaning he coul…
https://www.bbc.com/news/live/ckgx1yldxg4t
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“completion of Home Depot's acquisition of Mingledorff's”
CORROBORATED
Two separate web search results confirm that Home Depot's subsidiary, SRS Distribution, successfully completed the acquisition of Mingledorff's LLC.
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web search NEUTRAL — Home Depot is the largest home improvement retailer in the United States. In fiscal 2024, the company reported $159.5 billion in revenue and approximately 470,100 associates. The company is headquarte…
https://en.wikipedia.org/wiki/Home_Depot
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web search NEUTRAL — The acquisition of Mingledorff's adds HVAC distribution as a new vertical for SRS and brings an extensive product portfolio, robust distribution network and established customer relationships that are…
https://ir.homedepot.com/news-releases/2026/05-11-2026-13305…
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web search NEUTRAL — The Home Depot announced that its subsidiary, SRS Distribution Inc., successfully completed its acquisition of Mingledorff’s LLC. Adding the distributor to SRS will mean new resources to serve the hom…
https://www.digitalcommerce360.com/2026/05/15/home-depots-sr…
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“SRS is the specialty trade distribution company that Home Depot acquired back in 2024 for around $18 billion.”
CORROBORATED
Multiple sources confirm Home Depot acquired SRS Distribution for approximately $18 billion to $18.25 billion in 2024.
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web search NEUTRAL — The Home Depot just announced a big acquisition.AP Photo/Matt Rourke, File. Home Depot will buy SRS Distribution, a materials provider for professionals, in a deal valued at approximately $18.25 billi…
https://fortune.com/2024/03/28/home-depot-acquisition-srs-di…
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web search NEUTRAL — The acquisition will increase the company's total addressable market to approximately $1 trillion, an increase of approximately $50 billion. The combination of the two businesses will accelerate The H…
https://ir.homedepot.com/news-releases/2024/06-18-2024-15303…
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web search NEUTRAL — MDM Podcast: A Home Depot-SRS Megadeal Breakdown (April 3). The Home Depot noted that the now-completed deal will increase the combined company’s total addressable market to approximately $1 trillion …
https://www.mdm.com/news/top-distributor-sectors/building-ma…
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“SRS also houses GMS, another specialty building products distributor, which Home Depot bought for more than $4 billion in 2025.”
CORROBORATED
Two independent web search results confirm that Home Depot (via SRS) acquired GMS for $4.3 billion in 2025.
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web search NEUTRAL — "The Home Depot acquired SRS as a platform for growth, and SRS continues to demonstrate exceptional execution and strong performance," said Ted Decker, chair, president and CEO of The Home Depot.
https://ir.homedepot.com/news-releases/2025/06-30-2025-13035…
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web search NEUTRAL — Home Depot's SRS subsidiary acquired GMS for $4.3B, expanding its Pro contractor focus. GMS adds 320 distribution centers and expands SRS's product offerings beyond roofing and landscaping to include …
https://www.forbes.com/sites/pamdanziger/2025/07/07/home-dep…
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web search NEUTRAL — Home Depot announced an acquisition this week.Justin Sullivan—Getty Images. Home Depot is acquiring building materials distributor GMS for $4.3 billion to strengthen its “Pro” contractor business and …
https://fortune.com/2025/07/01/home-depot-acquisition-analys…
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“overall same-store sales increased 0.6% versus the year-ago period”
CORROBORATED
Although the specific 'claim 9' evidence block was empty, the evidence provided for 'claim 0' explicitly states: 'Sales at stores open at least a year, a key gauge of a retailer’s health, rose 0.6%'.
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“a 2.2% increase in the average ticket price more than offset a 1.3% decline in customer transactions”
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“U.S. same-store sales increased 0.4%”
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“big-ticket items (those with prices over $1,000) realized a 0.8% increase versus the prior year period”
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“overall comps were up 0.7% in February, up 2% in March, and down 0.5% in April”
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“In the United States, comps were up 0.4% in February, up 2% in March, and down 0.8% in April”
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“Sales growth of 2.5% to 4.5% [for 2026]”
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“Flat same-store sales growth to up 2% [for 2026]”
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“Gross margin of 33.1% with an adjusted operating margin of 12.8% to 13%”
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“Flat adjusted earnings growth to up 4% [for 2026]”
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info Disclaimer: This analysis is generated by AI and should be used as a starting point for critical thinking, not as definitive truth. Claims are verified against publicly available sources. Always consult the original article and additional sources for complete context.