Wells Fargo believes that the decline of HD Supply's stock following its results and the announcement of the sale of its Waterworks business was overdone. The firm blames the decline on worries about the outlook for the company's two remaining businesses and on some investors' belief that the company received a low price for the Waterworks. unit However, the firm thinks that the divestment will enable the company to increase the amount of cash it returns to shareholders while lowering its debt load. Wells remains upbeat on the stock and keeps an Outperform rating on the shares.