Home Depot Stock: A Falling Knife Worth Catching?

The housing market is experiencing a downturn, leading to suppressed existing home sales. This has negatively impacted companies that thrive alongside the housing market, including Home Depot (HD), which is down 30% in the last year and 15.5% in the last five.

Despite being a falling knife, Home Depot's well-established name and history of weathering various housing market storms make it worth considering for investment. The company has paid a healthy dividend (3.3%) and has over 2,300 stores across the U.S., Canada, and Mexico.

A good place to start looking for a bottom is Home Depot's price-to-earnings ratio. Currently trading at 19.6, which is close to its 10-year average of 19.5, this might mark a reasonable point to consider buying.