This Analyst Sees a 17% Downside to Home Depot Stock. Here’s Why.

Home Depot


and


Lowe’s


could be in for a rough year, with one analyst forecasting that the shares could lose more than 10% of their value.

Rising interest rates, persistent inflation, a weaker labor market, and the “bubble-esque appearance” of home- prices all point to the likelihood that home-improvement sales will decline in fiscal 2023 and 2024, wrote R5 Capital analyst Scott Mushkin.