Chart & Technical · HD
Peer Outliers for HD
AI-generated plain-English read of peer outliers for HD. Updated daily.
HD: lagging debt-to-equity vs peers
lowHD lags peers in the Retail sector specifically on debt-to-equity. A focused weakness: material if debt-to-equity is the primary value driver; less consequential if it's a secondary metric.
What will probably happen
- A lagging debt-to-equity is a specific drag: manageable if there's a recovery catalyst, structural if not.
- If debt-to-equity improves toward peer median, the stock has room to re-rate upward.
What to do
- If you HOLD this stock
- A lagging debt-to-equity is a specific drag on the peer narrative. Hold only if your thesis has a clear path to improving this metric.
- If you're EVALUATING this stock
- Lagging debt-to-equity reduces the attractiveness relative to peers. Initiate only if the valuation discount more than compensates.
- If you trade OPTIONS
- The lagging debt-to-equity supports a mild bearish options posture. Consider put spreads rather than outright puts given the focused (not broad) weakness.
Only 3 peer(s) and 7 metric(s): the z-score can swing materially on a single data point.
Technical details
Technical analysis
- Sector
- Retail
- Peer count
- 3
- Outlier breadth
- Focused Outlier
- Metrics evaluated
- 7
- Outlier direction
- Unfavorable Outliers
- P/B ratio z-score
- +3.00σ (extreme outlier)
- P/E ratio z-score
- -0.83σ (in line)
- P/S ratio z-score
- +1.04σ (in line)
- Divergence strength
- Strong Divergence
- gross margin z-score
- -0.01σ (in line)
- debt-to-equity z-score
- +11.91σ (extreme outlier)
- operating margin z-score
- +0.51σ (in line)
- return on equity z-score
- +8.26σ (extreme outlier)
Key levels
| Level | Value |
|---|---|
| z pb | 3 |
| z pe | -0.834 |
| z ps | 1.042 |
| z roe | 8.263 |
| n peers | 3 |
| n metrics | 7 |
| target pb | 26.721 |
| target pe | 19.466 |
| target ps | 1.674 |
| target roe | 1.808 |
| peer median pb | 2.244 |
| peer median pe | 23.982 |
| peer median ps | 1.373 |
| z gross margin | -0.007 |
| peer median roe | -0.068 |
| z debt to equity | 11.907 |
| z operating margin | 0.51 |
| target gross margin | 0.334 |
| target debt to equity | 5.1 |
| target operating margin | 0.102 |
| peer median gross margin | 0.335 |
| peer median debt to equity | 0.56 |
| peer median operating margin | 0.054 |
Caveats
- Outlier reads compare against peer median; if the peer set isn't truly comparable (e.g. growth-stage vs mature mix), the divergence is a definition artifact, not insight.