HD – Market expectations are for continued Uniform ROA expansion, but management is concerned about their growth, Pro customer experience, and B2B offerings

• The Home Depot, Inc. (HD:USA) near recent averages relative to UAFRS-based (Uniform) Earnings, with a 22.4x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may be concerned about comp sales growth, their Pro customer experience, and B2B website
• Specifically, management may lack confidence in their ability to sustain comp sales growth and improve their One Home Depot experience. Moreover, they may be concerned about their go-to-market approach for Pro customers and the impact of gas prices on their business. Finally, they may be exaggerating their ability to enhance account management and ordering capabilities for Pro customers, and offer a personalized B2B website experience.