Think Home Depot Stock Is Expensive? This Chart Might Change Your Mind

Lower interest rates will improve the home improvement chain's prospects.Trading at slightly less than 26 times expected earnings for 2024, Home Depot (HD -0.12%) does not look like a good value stock. Still, no meaningful discussion about its current earnings trajectory and valuation can occur without considering how the state of the housing market and the interest rate cycle will impact its business. So let's dive in.Home Depot's exposure to the housing marketThe key external metric for investors to watch ...