The rotation from (https://www.cnbc.com/2026/05/18/retail-stocks-are-ailing-on-fears-about-the-us-consumer-will-these-earnings-change-that.html) is rational on the surface: volume declining, pricing power hitting a ceiling. But the real pressure isn't coming from earnings destruction — it's coming from staples *valuations* that have compressed discretionary names into oversold territory. HD posted a 21.4% net margin and generated 24.7% of revenue as free cash flow.

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