As consumer spending patterns evolve in 2026, many investors are choosing between two titans of the retail landscape. Deciding between Home Depot (HD +0.45%) and Walmart (WMT +0.36%) requires understanding their distinct growth strategies.
While both companies dominate their respective niches, they serve different consumer needs and operate under different financial structures. Home Depot focuses on the specialized home improvement sector, whereas Walmart provides a broad array of general merchandise and essential groceries to a global audience.
The case for Home DepotHome Depot is a home improvement retailer that caters to both DIY homeowners and Professional customers, often called Pros. The company competes broadly among retail stocks while pursuing a strategic pivot toward these Professional customers. Recent acquisitions like SRS Distribution and GMS underscore this focus, as Home Depot seeks to capture a larger share of the complex construction and renovation market.
In the fiscal year ended Feb. 1, 2026, revenue reached nearly $164.7 billion, growing approximately 3.2% versus the prior year. The company generated net income of close to $14.2 billion, despite a slight decline in net margin to roughly 8.6%. This net margin reflects the portion of total revenue that remains as profit after all expenses are paid.
As of Home Depot’s February 2026 balance sheet, the debt-to-equity ratio is roughly 5.1. This ratio measures total debt against shareholder equity, reflecting the company's financial leverage and use of borrowed funds. The current ratio, which measures the ability to pay short-term obligations, is approximately 1.1, while free cash flow reached nearly $12.6 billion. Free cash flow is calculated as cash flow from operations minus capital expenditures.
The case for WalmartWalmart is the world's largest omnichannel retailer, serving approximately 280 million weekly customers through its global network of stores and digital platforms. The company is currently driving growth by leveraging its massive data footprint and the integration of smart TV-maker Vizio to expand its advertising business. This strategy allows the company to monetize shopper insights while maintaining its traditional focus on high-volume, low-cost fulfillment for general merchandise.
In the fiscal year ended Jan. 31, 2026, revenue reached approximately $713.2 billion, a 4.7% increase year over year. The company reported net income of nearly $21.9 billion, supported by a net margin of close to 3.1%. While this net margin is lower than that of specialty retailers, it is characteristic of the high-volume discount retail model, where efficiency is paramount to profitability.
As of Walmart’s January 2026 balance sheet, the debt-to-equity ratio is roughly 0.7, indicating that the company uses less debt relative to its equity than more leveraged peers. The current ratio is close to 0.8, suggesting that short-term liabilities exceed short-term assets, which is common for retailers with high inventory turnover. Free cash flow for the year was approximately $14.9 billion, providing substantial capital for continued investments in automation and AI.
Risk profile comparisonHome Depot faces risks related to a class action lawsuit involving the use of AI-powered license plate readers, which creates potential legal and regulatory exposure. The company must also successfully integrate large acquisitions like SRS and GMS while balancing its Pro-focused pivot with its core retail business. Furthermore, intense competition from traditional retailers and digital platforms requires constant investment to maintain its price and delivery advantages in a shifting market.
Walmart recently settled lawsuits in Texas and California regarding driver pay and product pricing, but it faces ongoing legal risks from new class action suits involving AI surveillance. The company is heavily dependent on its digital infrastructure, making it vulnerable to cybersecurity threats and data privacy regulations as its advertising business expands. Additionally, Walmart must contend with fierce competition from Amazon (AMZN -0.52%) and other digital disruptors while navigating macroeconomic factors like inflation.
Valuation comparisonHome Depot appears more reasonably priced based on its lower forward P/E relative to future earnings estimates, while Walmart carries a lower P/S ratio.
MetricHome DepotWalmartForward P/E22.238.0P/S ratio2.01.2Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
I'd like to start by acknowledging I'm a Home Depot shareholder. It has been, to put it kindly, a disappointing investment. Since I purchased it roughly four years ago, it has underperformed the S&P 500 by more than 70 percentage points. Meanwhile, Walmart has outperformed the S&P 500 in that time frame by nearly 60 percentage points. So just going by recent historical returns, Home Depot compares very unfavorably.
The key word, however, is "recent." Since 1990, Home Depot has blown Walmart out of the water, with a 17,000%-plus return versus Walmart's roughly 5,400% gain. Both companies also pay dividends, with the home improvement specialist offering a juicy 2.8% yield, which is nearly 2 percentage points higher than Walmart's current payout.
Despite Home Depot being a laggard since I've owned it, I would still prefer it in my portfolio versus Walmart simply due to some basic differences in how the retailers operate. Big, high-volume merchandisers typically have smaller margins; it's just kind of the nature of the business. (Notice above how much more net income Home Depot was able to produce as a percentage of revenue in its most recent fiscal year.) With few exceptions, I find companies with higher margins to be more attractive. But ideally, I like to invest in businesses with high margins and outperforming stocks. Maybe next time.
Arrowstreet Capital Limited Partnership cut its holdings in shares of The Home Depot, Inc. (NYSE:HD – Free Report) by 35.9% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,337,283 shares of the home improvement retailer’s stock after selling 748,355 shares during the period. Arrowstreet Capital Limited Partnership owned about 0.13% of Home Depot worth $439,819,000 as of its most recent SEC filing.
Other hedge funds have also made changes to their positions in the company. Vanguard Group Inc. lifted its stake in Home Depot by 1.3% in the fourth quarter. Vanguard Group Inc. now owns 99,635,779 shares of the home improvement retailer’s stock worth $34,284,672,000 after acquiring an additional 1,325,748 shares during the last quarter. State Street Corp lifted its holdings in shares of Home Depot by 1.8% in the 4th quarter. State Street Corp now owns 46,925,342 shares of the home improvement retailer’s stock valued at $16,147,010,000 after purchasing an additional 825,164 shares during the last quarter. Geode Capital Management LLC boosted its holdings in shares of Home Depot by 1.5% in the fourth quarter. Geode Capital Management LLC now owns 23,756,142 shares of the home improvement retailer’s stock valued at $8,151,344,000 after acquiring an additional 343,153 shares during the period. Bank of America Corp DE grew its position in Home Depot by 5.6% during the 4th quarter. Bank of America Corp DE now owns 16,063,532 shares of the home improvement retailer’s stock worth $5,527,461,000 after purchasing an additional 851,029 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. grew its holdings in shares of Home Depot by 7.8% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 15,471,132 shares of the home improvement retailer’s stock worth $5,323,620,000 after buying an additional 1,113,114 shares during the last quarter. Institutional investors and hedge funds own 70.86% of the company’s stock.
Home Depot Stock Down 1.9% NYSE:HD opened at $325.17 on Friday. The Home Depot, Inc. has a 52 week low of $289.10 and a 52 week high of $426.75. The company has a current ratio of 1.04, a quick ratio of 0.28 and a debt-to-equity ratio of 3.23. The stock has a 50 day moving average of $328.81 and a 200-day moving average of $344.81. The firm has a market capitalization of $324.24 billion, a PE ratio of 23.09, a price-to-earnings-growth ratio of 3.83 and a beta of 0.95.
Home Depot (NYSE:HD – Get Free Report) last issued its quarterly earnings data on Tuesday, May 19th. The home improvement retailer reported $3.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.41 by $0.02. The business had revenue of $41.77 billion during the quarter, compared to the consensus estimate of $41.59 billion. Home Depot had a return on equity of 117.24% and a net margin of 8.41%.The business’s revenue was up 4.8% on a year-over-year basis. During the same period in the previous year, the firm posted $3.56 earnings per share. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. Analysts predict that The Home Depot, Inc. will post 15.01 EPS for the current year.
Home Depot Announces Dividend The business also recently disclosed a quarterly dividend, which was paid on Thursday, June 18th. Stockholders of record on Thursday, June 4th were given a dividend of $2.33 per share. This represents a $9.32 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date was Thursday, June 4th. Home Depot’s dividend payout ratio is 66.19%.
Key Stories Impacting Home Depot Here are the key news stories impacting Home Depot this week:
Positive Sentiment: Home Depot launched its 2026 Halloween collection with upgraded Skelly animatronics and broader seasonal merchandise, a move that could help drive customer traffic and sales during a key retail period. Home Depot (HD) Launches 2026 Halloween Collection With Upgraded Skelly Animatronics Positive Sentiment: Bernstein reportedly reiterated a positive stance on Home Depot, and Guggenheim also upgraded the stock to Buy, suggesting some analysts still see value in the shares. Home Depot (HD) Gets a Hold from Bernstein Home Depot (NYSE:HD) Earns “Buy” Rating from Guggenheim Neutral Sentiment: Analysts are expecting only modest year-over-year EPS growth when Home Depot reports next month, keeping expectations relatively subdued ahead of earnings. Earnings Preview: What To Expect From The Home Depot’s Report Negative Sentiment: Weak housing-market conditions are slowing big-ticket last-mile delivery and signaling softer demand tied to fewer home transactions, which is a headwind for Home Depot’s core business. Weak housing market hurts big and bulky last-mile delivery Negative Sentiment: Home Depot was reported to be falling more than the broader market, reinforcing that investors are reacting negatively to the housing slowdown and near-term growth concerns. Home Depot (HD) Falls More Steeply Than Broader Market: What Investors Need to Know Analysts Set New Price Targets HD has been the subject of several analyst reports. The Goldman Sachs Group cut their price target on shares of Home Depot from $409.00 to $390.00 and set a “buy” rating for the company in a report on Wednesday, May 20th. Bank of America assumed coverage on shares of Home Depot in a research report on Tuesday, May 5th. They issued a “buy” rating and a $374.00 price target on the stock. Guggenheim reissued a “buy” rating and issued a $425.00 target price on shares of Home Depot in a research note on Monday. Argus reduced their price target on Home Depot from $425.00 to $400.00 and set a “buy” rating on the stock in a research note on Thursday, May 21st. Finally, BNP Paribas Exane lowered their price objective on shares of Home Depot from $348.00 to $325.00 and set a “neutral” rating for the company in a research note on Tuesday, May 19th. Eighteen investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Home Depot has a consensus rating of “Moderate Buy” and an average target price of $371.71.
Check Out Our Latest Stock Report on HD
Home Depot Company Profile (Free Report)
The Home Depot, Inc (NYSE: HD) is a leading home improvement retailer that operates large-format stores and an integrated online platform offering a broad range of products and services for do-it-yourself consumers, professional contractors and businesses. The company was founded in 1978 by Bernard Marcus and Arthur Blank and is headquartered in Atlanta, Georgia. Since opening its first stores at the end of the 1970s, Home Depot has grown into a multinational retailer known for its orange-branded stores and wide assortment of home improvement merchandise.
Home Depot’s core business includes the sale of building materials, lumber, tools, hardware, appliances, paint, plumbing and electrical supplies, lawn and garden products, and home décor.
Further Reading Five stocks we like better than Home Depot Premium Retail’s Stress Test Is Separating Winners From Losers D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? GE Vernova Just Sent a Mixed AI Signal to Investors Alphabet Crushed Earnings, But One Number Spooked the Market
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Bank of Nova Scotia grew its position in The Home Depot, Inc. (NYSE:HD – Free Report) by 109.9% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 722,758 shares of the home improvement retailer’s stock after buying an additional 378,393 shares during the period. Bank of Nova Scotia owned 0.07% of Home Depot worth $237,709,000 as of its most recent SEC filing.
A number of other hedge funds and other institutional investors have also made changes to their positions in HD. Advocate Investing Services LLC acquired a new stake in Home Depot during the fourth quarter worth $25,000. Parvin Asset Management LLC lifted its stake in shares of Home Depot by 110.0% in the 3rd quarter. Parvin Asset Management LLC now owns 63 shares of the home improvement retailer’s stock valued at $26,000 after purchasing an additional 33 shares during the last quarter. Cache Advisors LLC acquired a new position in shares of Home Depot in the 1st quarter valued at $27,000. Key Capital Management INC purchased a new position in shares of Home Depot during the 4th quarter worth $28,000. Finally, Merkkuri Wealth Advisors LLC purchased a new position in shares of Home Depot during the 1st quarter worth $28,000. Institutional investors and hedge funds own 70.86% of the company’s stock.
Home Depot Price Performance Shares of HD opened at $325.17 on Friday. The firm has a market capitalization of $324.24 billion, a price-to-earnings ratio of 23.09, a PEG ratio of 3.83 and a beta of 0.95. The firm’s fifty day simple moving average is $328.81 and its 200-day simple moving average is $344.81. The Home Depot, Inc. has a twelve month low of $289.10 and a twelve month high of $426.75. The company has a current ratio of 1.04, a quick ratio of 0.28 and a debt-to-equity ratio of 3.23.
Home Depot (NYSE:HD – Get Free Report) last issued its earnings results on Tuesday, May 19th. The home improvement retailer reported $3.43 EPS for the quarter, topping analysts’ consensus estimates of $3.41 by $0.02. The firm had revenue of $41.77 billion during the quarter, compared to the consensus estimate of $41.59 billion. Home Depot had a net margin of 8.41% and a return on equity of 117.24%. The company’s revenue was up 4.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $3.56 earnings per share. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. Equities analysts forecast that The Home Depot, Inc. will post 15.01 EPS for the current fiscal year.
Home Depot Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Thursday, June 18th. Stockholders of record on Thursday, June 4th were given a dividend of $2.33 per share. This represents a $9.32 annualized dividend and a dividend yield of 2.9%. The ex-dividend date of this dividend was Thursday, June 4th. Home Depot’s dividend payout ratio is currently 66.19%.
Analysts Set New Price Targets HD has been the topic of several research analyst reports. BNP Paribas Exane reduced their price objective on shares of Home Depot from $348.00 to $325.00 and set a “neutral” rating on the stock in a report on Tuesday, May 19th. JPMorgan Chase & Co. lowered their target price on shares of Home Depot from $423.00 to $396.00 and set an “overweight” rating for the company in a research note on Wednesday, May 20th. Weiss Ratings upgraded shares of Home Depot from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, July 7th. HSBC reduced their price target on shares of Home Depot from $392.00 to $310.00 and set a “hold” rating on the stock in a research note on Wednesday, May 20th. Finally, Telsey Advisory Group decreased their price objective on shares of Home Depot from $435.00 to $410.00 and set an “outperform” rating on the stock in a report on Wednesday, May 20th. Eighteen equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $371.71.
View Our Latest Research Report on HD
Key Home Depot News Here are the key news stories impacting Home Depot this week:
Positive Sentiment: Home Depot launched its 2026 Halloween collection with upgraded Skelly animatronics and broader seasonal merchandise, a move that could help drive customer traffic and sales during a key retail period. Home Depot (HD) Launches 2026 Halloween Collection With Upgraded Skelly Animatronics Positive Sentiment: Bernstein reportedly reiterated a positive stance on Home Depot, and Guggenheim also upgraded the stock to Buy, suggesting some analysts still see value in the shares. Home Depot (HD) Gets a Hold from Bernstein Home Depot (NYSE:HD) Earns “Buy” Rating from Guggenheim Neutral Sentiment: Analysts are expecting only modest year-over-year EPS growth when Home Depot reports next month, keeping expectations relatively subdued ahead of earnings. Earnings Preview: What To Expect From The Home Depot’s Report Negative Sentiment: Weak housing-market conditions are slowing big-ticket last-mile delivery and signaling softer demand tied to fewer home transactions, which is a headwind for Home Depot’s core business. Weak housing market hurts big and bulky last-mile delivery Negative Sentiment: Home Depot was reported to be falling more than the broader market, reinforcing that investors are reacting negatively to the housing slowdown and near-term growth concerns. Home Depot (HD) Falls More Steeply Than Broader Market: What Investors Need to Know Home Depot Company Profile (Free Report)
The Home Depot, Inc (NYSE: HD) is a leading home improvement retailer that operates large-format stores and an integrated online platform offering a broad range of products and services for do-it-yourself consumers, professional contractors and businesses. The company was founded in 1978 by Bernard Marcus and Arthur Blank and is headquartered in Atlanta, Georgia. Since opening its first stores at the end of the 1970s, Home Depot has grown into a multinational retailer known for its orange-branded stores and wide assortment of home improvement merchandise.
Home Depot’s core business includes the sale of building materials, lumber, tools, hardware, appliances, paint, plumbing and electrical supplies, lawn and garden products, and home décor.
Further Reading Five stocks we like better than Home Depot Premium Retail’s Stress Test Is Separating Winners From Losers D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? GE Vernova Just Sent a Mixed AI Signal to Investors Alphabet Crushed Earnings, But One Number Spooked the Market
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In the latest close session, Home Depot (HD - Free Report) was down 2.03% at $324.71. The stock's performance was behind the S&P 500's daily loss of 1.21%. On the other hand, the Dow registered a loss of 0.97%, and the technology-centric Nasdaq decreased by 2.15%.
Coming into today, shares of the home-improvement retailer had lost 3.33% in the past month. In that same time, the Retail-Wholesale sector gained 2.27%, while the S&P 500 gained 0.42%.
The upcoming earnings release of Home Depot will be of great interest to investors. The company's earnings report is expected on August 18, 2026. The company's upcoming EPS is projected at $4.71, signifying a 0.64% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $47.5 billion, indicating a 4.92% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $15.01 per share and revenue of $171.65 billion, indicating changes of +2.18% and +4.23%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Home Depot. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Home Depot boasts a Zacks Rank of #4 (Sell).
Investors should also note Home Depot's current valuation metrics, including its Forward P/E ratio of 22.08. Its industry sports an average Forward P/E of 22.08, so one might conclude that Home Depot is trading at no noticeable deviation comparatively.
We can also see that HD currently has a PEG ratio of 3.83. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Home Furnishings industry currently had an average PEG ratio of 1.88 as of yesterday's close.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 80, positioning it in the top 33% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
ABN Amro Investment Solutions trimmed its position in shares of The Home Depot, Inc. (NYSE:HD – Free Report) by 1.6% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 210,950 shares of the home improvement retailer’s stock after selling 3,441 shares during the period. Home Depot comprises 0.9% of ABN Amro Investment Solutions’ investment portfolio, making the stock its 22nd largest position. ABN Amro Investment Solutions’ holdings in Home Depot were worth $69,379,000 at the end of the most recent reporting period.
Other hedge funds also recently bought and sold shares of the company. Advocate Investing Services LLC purchased a new stake in Home Depot during the fourth quarter valued at about $25,000. Parvin Asset Management LLC increased its holdings in shares of Home Depot by 110.0% in the third quarter. Parvin Asset Management LLC now owns 63 shares of the home improvement retailer’s stock worth $26,000 after buying an additional 33 shares during the period. Cache Advisors LLC bought a new stake in shares of Home Depot in the 1st quarter valued at about $27,000. Key Capital Management INC bought a new stake in shares of Home Depot in the 4th quarter valued at about $28,000. Finally, Merkkuri Wealth Advisors LLC purchased a new stake in Home Depot during the 1st quarter valued at about $28,000. Institutional investors own 70.86% of the company’s stock.
Home Depot Price Performance HD opened at $331.73 on Wednesday. The company has a debt-to-equity ratio of 3.23, a quick ratio of 0.28 and a current ratio of 1.04. The stock has a market capitalization of $330.77 billion, a PE ratio of 23.56, a price-to-earnings-growth ratio of 3.84 and a beta of 0.95. The stock’s 50 day moving average price is $327.81 and its 200-day moving average price is $345.04. The Home Depot, Inc. has a 52-week low of $289.10 and a 52-week high of $426.75.
Home Depot (NYSE:HD – Get Free Report) last released its quarterly earnings results on Tuesday, May 19th. The home improvement retailer reported $3.43 earnings per share for the quarter, beating the consensus estimate of $3.41 by $0.02. The business had revenue of $41.77 billion for the quarter, compared to analysts’ expectations of $41.59 billion. Home Depot had a net margin of 8.41% and a return on equity of 117.24%. The firm’s revenue for the quarter was up 4.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $3.56 earnings per share. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. On average, equities research analysts predict that The Home Depot, Inc. will post 15.01 EPS for the current year.
Home Depot Announces Dividend The business also recently announced a quarterly dividend, which was paid on Thursday, June 18th. Stockholders of record on Thursday, June 4th were paid a dividend of $2.33 per share. The ex-dividend date of this dividend was Thursday, June 4th. This represents a $9.32 dividend on an annualized basis and a dividend yield of 2.8%. Home Depot’s payout ratio is presently 66.19%.
Analysts Set New Price Targets HD has been the topic of several recent research reports. Jefferies Financial Group reduced their price target on Home Depot from $361.00 to $360.00 and set a “buy” rating on the stock in a research report on Thursday, June 4th. The Goldman Sachs Group dropped their price objective on Home Depot from $409.00 to $390.00 and set a “buy” rating for the company in a research note on Wednesday, May 20th. Weiss Ratings upgraded shares of Home Depot from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, July 7th. Citigroup decreased their target price on shares of Home Depot from $450.00 to $400.00 and set a “buy” rating on the stock in a research note on Tuesday, May 12th. Finally, UBS Group lowered their price target on shares of Home Depot from $450.00 to $430.00 and set a “buy” rating for the company in a report on Wednesday, May 20th. Eighteen analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $371.71.
Check Out Our Latest Stock Analysis on HD
About Home Depot (Free Report)
The Home Depot, Inc (NYSE: HD) is a leading home improvement retailer that operates large-format stores and an integrated online platform offering a broad range of products and services for do-it-yourself consumers, professional contractors and businesses. The company was founded in 1978 by Bernard Marcus and Arthur Blank and is headquartered in Atlanta, Georgia. Since opening its first stores at the end of the 1970s, Home Depot has grown into a multinational retailer known for its orange-branded stores and wide assortment of home improvement merchandise.
Home Depot’s core business includes the sale of building materials, lumber, tools, hardware, appliances, paint, plumbing and electrical supplies, lawn and garden products, and home décor.
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Baader Bank Aktiengesellschaft purchased a new stake in shares of The Home Depot, Inc. (NYSE:HD – Free Report) during the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm purchased 3,206 shares of the home improvement retailer’s stock, valued at approximately $1,054,000.
Several other hedge funds and other institutional investors have also added to or reduced their stakes in HD. Norges Bank bought a new position in shares of Home Depot in the fourth quarter valued at approximately $4,850,329,000. Wellington Management Group LLP increased its position in shares of Home Depot by 60.8% during the third quarter. Wellington Management Group LLP now owns 10,143,089 shares of the home improvement retailer’s stock valued at $4,109,878,000 after acquiring an additional 3,836,051 shares during the last quarter. Cardano Risk Management B.V. increased its position in shares of Home Depot by 901.5% during the fourth quarter. Cardano Risk Management B.V. now owns 3,290,540 shares of the home improvement retailer’s stock valued at $1,132,275,000 after acquiring an additional 2,961,979 shares during the last quarter. Diamant Asset Management Inc. lifted its holdings in Home Depot by 33,026.3% during the first quarter. Diamant Asset Management Inc. now owns 2,342,026 shares of the home improvement retailer’s stock worth $770,269,000 after acquiring an additional 2,334,956 shares during the period. Finally, J. Stern & Co. LLP lifted its holdings in Home Depot by 14,869.3% during the fourth quarter. J. Stern & Co. LLP now owns 2,232,521 shares of the home improvement retailer’s stock worth $768,210,000 after acquiring an additional 2,217,607 shares during the period. 70.86% of the stock is currently owned by hedge funds and other institutional investors.
Wall Street Analysts Forecast Growth A number of brokerages have issued reports on HD. Mizuho reduced their price objective on Home Depot from $415.00 to $385.00 and set an “outperform” rating for the company in a research note on Wednesday, May 20th. UBS Group lowered their target price on Home Depot from $450.00 to $430.00 and set a “buy” rating on the stock in a research note on Wednesday, May 20th. Oppenheimer lowered their target price on Home Depot from $405.00 to $310.00 and set a “market perform” rating on the stock in a research note on Monday, May 18th. Citigroup cut their price target on shares of Home Depot from $450.00 to $400.00 and set a “buy” rating on the stock in a report on Tuesday, May 12th. Finally, Piper Sandler reduced their price target on shares of Home Depot from $422.00 to $421.00 and set an “overweight” rating for the company in a research report on Wednesday, May 20th. Eighteen investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $371.71.
Check Out Our Latest Report on Home Depot
Home Depot Price Performance Shares of NYSE HD opened at $332.96 on Tuesday. The stock has a fifty day simple moving average of $327.39 and a two-hundred day simple moving average of $345.13. The Home Depot, Inc. has a 1-year low of $289.10 and a 1-year high of $426.75. The firm has a market cap of $332.01 billion, a price-to-earnings ratio of 23.65, a price-to-earnings-growth ratio of 3.91 and a beta of 0.95. The company has a current ratio of 1.04, a quick ratio of 0.28 and a debt-to-equity ratio of 3.23.
Home Depot (NYSE:HD – Get Free Report) last released its earnings results on Tuesday, May 19th. The home improvement retailer reported $3.43 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.41 by $0.02. The business had revenue of $41.77 billion during the quarter, compared to the consensus estimate of $41.59 billion. Home Depot had a return on equity of 117.24% and a net margin of 8.41%.The business’s revenue for the quarter was up 4.8% on a year-over-year basis. During the same period last year, the business posted $3.56 earnings per share. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. Analysts anticipate that The Home Depot, Inc. will post 15.01 earnings per share for the current year.
Home Depot Announces Dividend The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 18th. Investors of record on Thursday, June 4th were issued a $2.33 dividend. The ex-dividend date of this dividend was Thursday, June 4th. This represents a $9.32 annualized dividend and a yield of 2.8%. Home Depot’s dividend payout ratio (DPR) is 66.19%.
About Home Depot (Free Report)
The Home Depot, Inc (NYSE: HD) is a leading home improvement retailer that operates large-format stores and an integrated online platform offering a broad range of products and services for do-it-yourself consumers, professional contractors and businesses. The company was founded in 1978 by Bernard Marcus and Arthur Blank and is headquartered in Atlanta, Georgia. Since opening its first stores at the end of the 1970s, Home Depot has grown into a multinational retailer known for its orange-branded stores and wide assortment of home improvement merchandise.
Home Depot’s core business includes the sale of building materials, lumber, tools, hardware, appliances, paint, plumbing and electrical supplies, lawn and garden products, and home décor.
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Andra AP fonden increased its holdings in The Home Depot, Inc. (NYSE:HD – Free Report) by 55.4% during the first quarter, according to its most recent disclosure with the SEC. The institutional investor owned 144,162 shares of the home improvement retailer’s stock after buying an additional 51,402 shares during the period. Home Depot accounts for approximately 0.6% of Andra AP fonden’s portfolio, making the stock its 22nd largest holding. Andra AP fonden’s holdings in Home Depot were worth $47,413,000 at the end of the most recent quarter.
Several other large investors also recently added to or reduced their stakes in HD. Norges Bank purchased a new position in Home Depot in the 4th quarter worth approximately $4,850,329,000. Wellington Management Group LLP raised its position in shares of Home Depot by 60.8% during the 3rd quarter. Wellington Management Group LLP now owns 10,143,089 shares of the home improvement retailer’s stock valued at $4,109,878,000 after buying an additional 3,836,051 shares in the last quarter. Cardano Risk Management B.V. raised its position in shares of Home Depot by 901.5% during the 4th quarter. Cardano Risk Management B.V. now owns 3,290,540 shares of the home improvement retailer’s stock valued at $1,132,275,000 after buying an additional 2,961,979 shares in the last quarter. Diamant Asset Management Inc. lifted its holdings in shares of Home Depot by 33,026.3% during the 1st quarter. Diamant Asset Management Inc. now owns 2,342,026 shares of the home improvement retailer’s stock worth $770,269,000 after acquiring an additional 2,334,956 shares during the last quarter. Finally, J. Stern & Co. LLP lifted its holdings in shares of Home Depot by 14,869.3% during the 4th quarter. J. Stern & Co. LLP now owns 2,232,521 shares of the home improvement retailer’s stock worth $768,210,000 after acquiring an additional 2,217,607 shares during the last quarter. Institutional investors own 70.86% of the company’s stock.
Analysts Set New Price Targets A number of research analysts recently commented on HD shares. HSBC reduced their target price on Home Depot from $392.00 to $310.00 and set a “hold” rating on the stock in a research note on Wednesday, May 20th. DA Davidson decreased their price target on shares of Home Depot from $445.00 to $377.00 and set a “buy” rating on the stock in a research note on Tuesday, May 19th. TD Cowen lowered their price objective on shares of Home Depot from $450.00 to $375.00 and set a “buy” rating for the company in a report on Wednesday, May 20th. Jefferies Financial Group cut their price objective on shares of Home Depot from $361.00 to $360.00 and set a “buy” rating for the company in a research note on Thursday, June 4th. Finally, Citigroup reduced their target price on shares of Home Depot from $450.00 to $400.00 and set a “buy” rating on the stock in a report on Tuesday, May 12th. Eighteen analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $371.71.
Read Our Latest Stock Report on HD
Home Depot Stock Performance Home Depot stock opened at $332.96 on Tuesday. The company has a current ratio of 1.04, a quick ratio of 0.28 and a debt-to-equity ratio of 3.23. The firm has a market cap of $332.01 billion, a P/E ratio of 23.65, a P/E/G ratio of 3.91 and a beta of 0.95. The Home Depot, Inc. has a 1-year low of $289.10 and a 1-year high of $426.75. The firm has a 50-day moving average of $327.39 and a 200-day moving average of $345.13.
Home Depot (NYSE:HD – Get Free Report) last announced its quarterly earnings results on Tuesday, May 19th. The home improvement retailer reported $3.43 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.41 by $0.02. The company had revenue of $41.77 billion for the quarter, compared to the consensus estimate of $41.59 billion. Home Depot had a return on equity of 117.24% and a net margin of 8.41%.Home Depot’s revenue was up 4.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $3.56 EPS. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. Sell-side analysts expect that The Home Depot, Inc. will post 15.01 EPS for the current year.
Home Depot Dividend Announcement The firm also recently announced a quarterly dividend, which was paid on Thursday, June 18th. Stockholders of record on Thursday, June 4th were paid a dividend of $2.33 per share. The ex-dividend date of this dividend was Thursday, June 4th. This represents a $9.32 annualized dividend and a dividend yield of 2.8%. Home Depot’s payout ratio is 66.19%.
Home Depot Company Profile (Free Report)
The Home Depot, Inc (NYSE: HD) is a leading home improvement retailer that operates large-format stores and an integrated online platform offering a broad range of products and services for do-it-yourself consumers, professional contractors and businesses. The company was founded in 1978 by Bernard Marcus and Arthur Blank and is headquartered in Atlanta, Georgia. Since opening its first stores at the end of the 1970s, Home Depot has grown into a multinational retailer known for its orange-branded stores and wide assortment of home improvement merchandise.
Home Depot’s core business includes the sale of building materials, lumber, tools, hardware, appliances, paint, plumbing and electrical supplies, lawn and garden products, and home décor.
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Dimensional Fund Advisors LP increased its holdings in shares of The Home Depot, Inc. (NYSE:HD – Free Report) by 1.7% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 5,216,662 shares of the home improvement retailer’s stock after acquiring an additional 87,248 shares during the period. Home Depot comprises approximately 0.4% of Dimensional Fund Advisors LP’s holdings, making the stock its 24th largest holding. Dimensional Fund Advisors LP owned approximately 0.52% of Home Depot worth $1,715,564,000 at the end of the most recent quarter.
A number of other hedge funds and other institutional investors have also recently bought and sold shares of HD. Curio Wealth LLC boosted its stake in Home Depot by 13.5% in the fourth quarter. Curio Wealth LLC now owns 218 shares of the home improvement retailer’s stock worth $76,000 after purchasing an additional 26 shares in the last quarter. Westfuller Advisors LLC increased its stake in shares of Home Depot by 2.1% in the fourth quarter. Westfuller Advisors LLC now owns 1,325 shares of the home improvement retailer’s stock valued at $456,000 after buying an additional 27 shares in the last quarter. Darwin Wealth Management LLC raised its holdings in shares of Home Depot by 0.5% in the fourth quarter. Darwin Wealth Management LLC now owns 4,949 shares of the home improvement retailer’s stock valued at $1,703,000 after buying an additional 27 shares during the last quarter. Alesco Advisors LLC raised its holdings in shares of Home Depot by 3.2% in the fourth quarter. Alesco Advisors LLC now owns 866 shares of the home improvement retailer’s stock valued at $298,000 after buying an additional 27 shares during the last quarter. Finally, Canandaigua National Trust Co of Florida lifted its position in Home Depot by 1.3% during the 4th quarter. Canandaigua National Trust Co of Florida now owns 2,178 shares of the home improvement retailer’s stock worth $749,000 after buying an additional 27 shares in the last quarter. 70.86% of the stock is owned by institutional investors and hedge funds.
Wall Street Analysts Forecast Growth A number of equities research analysts have commented on HD shares. Royal Bank Of Canada decreased their price objective on shares of Home Depot from $377.00 to $340.00 and set a “sector perform” rating on the stock in a report on Wednesday, May 20th. BNP Paribas Exane dropped their target price on shares of Home Depot from $348.00 to $325.00 and set a “neutral” rating for the company in a research note on Tuesday, May 19th. HSBC reduced their target price on shares of Home Depot from $392.00 to $310.00 and set a “hold” rating on the stock in a research report on Wednesday, May 20th. Oppenheimer lowered their price target on shares of Home Depot from $405.00 to $310.00 and set a “market perform” rating for the company in a report on Monday, May 18th. Finally, Wall Street Zen upgraded shares of Home Depot from a “sell” rating to a “hold” rating in a research report on Tuesday, June 2nd. Eighteen investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $371.71.
Read Our Latest Report on Home Depot
Home Depot Stock Performance Shares of NYSE:HD opened at $339.22 on Monday. The company has a current ratio of 1.04, a quick ratio of 0.28 and a debt-to-equity ratio of 3.23. The Home Depot, Inc. has a 1-year low of $289.10 and a 1-year high of $426.75. The stock has a market capitalization of $338.24 billion, a P/E ratio of 24.09, a P/E/G ratio of 3.91 and a beta of 0.95. The business has a 50-day moving average price of $326.96 and a two-hundred day moving average price of $345.22.
Home Depot (NYSE:HD – Get Free Report) last issued its earnings results on Tuesday, May 19th. The home improvement retailer reported $3.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.41 by $0.02. Home Depot had a net margin of 8.41% and a return on equity of 117.24%. The company had revenue of $41.77 billion for the quarter, compared to analyst estimates of $41.59 billion. During the same quarter last year, the firm earned $3.56 EPS. The company’s revenue for the quarter was up 4.8% on a year-over-year basis. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. Equities analysts predict that The Home Depot, Inc. will post 15.01 earnings per share for the current year.
Home Depot Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Thursday, June 18th. Shareholders of record on Thursday, June 4th were paid a $2.33 dividend. The ex-dividend date of this dividend was Thursday, June 4th. This represents a $9.32 dividend on an annualized basis and a yield of 2.7%. Home Depot’s dividend payout ratio (DPR) is presently 66.19%.
About Home Depot (Free Report)
The Home Depot, Inc (NYSE: HD) is a leading home improvement retailer that operates large-format stores and an integrated online platform offering a broad range of products and services for do-it-yourself consumers, professional contractors and businesses. The company was founded in 1978 by Bernard Marcus and Arthur Blank and is headquartered in Atlanta, Georgia. Since opening its first stores at the end of the 1970s, Home Depot has grown into a multinational retailer known for its orange-branded stores and wide assortment of home improvement merchandise.
Home Depot’s core business includes the sale of building materials, lumber, tools, hardware, appliances, paint, plumbing and electrical supplies, lawn and garden products, and home décor.
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Copeland Capital Management LLC reduced its position in shares of The Home Depot, Inc. (NYSE:HD – Free Report) by 94.6% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 1,553 shares of the home improvement retailer’s stock after selling 27,245 shares during the period. Copeland Capital Management LLC’s holdings in Home Depot were worth $511,000 at the end of the most recent reporting period.
Other hedge funds and other institutional investors have also bought and sold shares of the company. Advisortrust Partners LLC lifted its position in shares of Home Depot by 17.5% during the 1st quarter. Advisortrust Partners LLC now owns 853 shares of the home improvement retailer’s stock worth $281,000 after purchasing an additional 127 shares during the last quarter. Assetmark Inc. grew its holdings in Home Depot by 19.6% in the 1st quarter. Assetmark Inc. now owns 84,474 shares of the home improvement retailer’s stock valued at $27,783,000 after buying an additional 13,866 shares during the last quarter. NovaPoint Capital LLC grew its holdings in Home Depot by 3.3% in the 1st quarter. NovaPoint Capital LLC now owns 34,957 shares of the home improvement retailer’s stock valued at $11,497,000 after buying an additional 1,112 shares during the last quarter. PeakShares LLC increased its position in Home Depot by 5.3% in the 1st quarter. PeakShares LLC now owns 3,006 shares of the home improvement retailer’s stock worth $989,000 after buying an additional 150 shares during the period. Finally, Barings LLC increased its position in Home Depot by 13.9% in the 1st quarter. Barings LLC now owns 680 shares of the home improvement retailer’s stock worth $224,000 after buying an additional 83 shares during the period. 70.86% of the stock is currently owned by institutional investors and hedge funds.
Analysts Set New Price Targets A number of brokerages have recently commented on HD. JPMorgan Chase & Co. cut their price target on Home Depot from $423.00 to $396.00 and set an “overweight” rating for the company in a report on Wednesday, May 20th. Wall Street Zen upgraded shares of Home Depot from a “sell” rating to a “hold” rating in a research note on Tuesday, June 2nd. Telsey Advisory Group dropped their target price on shares of Home Depot from $435.00 to $410.00 and set an “outperform” rating on the stock in a research report on Wednesday, May 20th. Oppenheimer cut their target price on shares of Home Depot from $405.00 to $310.00 and set a “market perform” rating for the company in a research note on Monday, May 18th. Finally, Guggenheim reissued a “buy” rating on shares of Home Depot in a report on Monday, June 29th. Eighteen research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $371.71.
Check Out Our Latest Analysis on Home Depot
Home Depot Trading Down 2.5% Home Depot stock opened at $339.22 on Friday. The business has a 50 day moving average price of $326.96 and a two-hundred day moving average price of $345.24. The company has a quick ratio of 0.28, a current ratio of 1.04 and a debt-to-equity ratio of 3.23. The Home Depot, Inc. has a 12 month low of $289.10 and a 12 month high of $426.75. The stock has a market cap of $338.24 billion, a price-to-earnings ratio of 24.09, a price-to-earnings-growth ratio of 3.91 and a beta of 0.95.
Home Depot (NYSE:HD – Get Free Report) last announced its quarterly earnings data on Tuesday, May 19th. The home improvement retailer reported $3.43 earnings per share for the quarter, topping the consensus estimate of $3.41 by $0.02. The company had revenue of $41.77 billion for the quarter, compared to analyst estimates of $41.59 billion. Home Depot had a return on equity of 117.24% and a net margin of 8.41%.Home Depot’s revenue for the quarter was up 4.8% compared to the same quarter last year. During the same quarter last year, the firm earned $3.56 EPS. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. As a group, equities analysts forecast that The Home Depot, Inc. will post 15.01 EPS for the current year.
Home Depot Announces Dividend The firm also recently declared a quarterly dividend, which was paid on Thursday, June 18th. Shareholders of record on Thursday, June 4th were paid a dividend of $2.33 per share. The ex-dividend date was Thursday, June 4th. This represents a $9.32 dividend on an annualized basis and a yield of 2.7%. Home Depot’s payout ratio is currently 66.19%.
About Home Depot (Free Report)
The Home Depot, Inc (NYSE: HD) is a leading home improvement retailer that operates large-format stores and an integrated online platform offering a broad range of products and services for do-it-yourself consumers, professional contractors and businesses. The company was founded in 1978 by Bernard Marcus and Arthur Blank and is headquartered in Atlanta, Georgia. Since opening its first stores at the end of the 1970s, Home Depot has grown into a multinational retailer known for its orange-branded stores and wide assortment of home improvement merchandise.
Home Depot’s core business includes the sale of building materials, lumber, tools, hardware, appliances, paint, plumbing and electrical supplies, lawn and garden products, and home décor.
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In the latest close session, Home Depot (HD - Free Report) was up +1.1% at $341.44. The stock's change was more than the S&P 500's daily gain of 0.38%. Meanwhile, the Dow experienced a rise of 0.29%, and the technology-dominated Nasdaq saw an increase of 0.62%.
The stock of home-improvement retailer has risen by 0.19% in the past month, lagging the Retail-Wholesale sector's gain of 0.54% and the S&P 500's gain of 1.61%.
The upcoming earnings release of Home Depot will be of great interest to investors. The company's earnings report is expected on August 18, 2026. On that day, Home Depot is projected to report earnings of $4.71 per share, which would represent year-over-year growth of 0.64%. In the meantime, our current consensus estimate forecasts the revenue to be $47.5 billion, indicating a 4.92% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.01 per share and revenue of $171.65 billion. These totals would mark changes of +2.18% and +4.23%, respectively, from last year.
Any recent changes to analyst estimates for Home Depot should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Home Depot currently has a Zacks Rank of #4 (Sell).
With respect to valuation, Home Depot is currently being traded at a Forward P/E ratio of 22.5. For comparison, its industry has an average Forward P/E of 22.5, which means Home Depot is trading at no noticeable deviation to the group.
It is also worth noting that HD currently has a PEG ratio of 3.9. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Home Furnishings was holding an average PEG ratio of 1.88 at yesterday's closing price.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 171, finds itself in the bottom 31% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
The Home Depot is launching its 2026 Halloween collection online and on its app on July 16, 2026, followed by an in-store rollout later this August. The viral 12 FT SKELLY™ giant returns with technology upgrades including custom sounds, light and servo motor movements. The roster of giant décor expands with an 11 FT Giant-Sized Mummy and 8 FT Perilous Plant Monster. , /PRNewswire/ -- Drawing inspiration from Halloween communities and social trends, The Home Depot continues to push the limits of seasonal décor and exceed fan expectations with the reveal of its 2026 Halloween collection. Larger-than-life animatronics, immersive décor and interactive features launch on HomeDepot.com and The Home Depot app starting July 16 – perfect for giving trick-or-treaters goosebumps. Halloween products hit Home Depot store shelves starting in late August.
"We are constantly inspired by the inventive spirit of the Halloween enthusiast community, and their year-round passion motivates us to push the boundaries of innovation in our collection each year," said Aubrey Horowitz, decorative holiday merchant at The Home Depot. "This year is no different. From our realistically detailed collections to dynamic interactive technology like the upgraded SKELLY's real-time, app-controlled voice modulation, we are giving our customers the tools to create their most captivating displays yet—all at an incredible value."
This year's collection offers something for every Halloween fan, from spooky to whimsical to family friendly. Pairing exceptional value with industry-leading advancements, The Home Depot's 2026 Halloween collection makes high-impact holiday decorating more accessible, with scares for every budget. The Home Depot offers all in-store giant animatronics for less than $300.
A Cultural Phenomenon: The SKELLY Giant Returns
The viral 12 FT Giant-Sized SKELLY Halloween decoration returns with app-enabled upgrades that let owners customize head and mouth movements with servo motors, speak through the SKELLY animatronic in real time via Bluetooth®, record up to 30 sounds and choose from 20 different LCD LifeEyes™ effects. These upgrades make the original Halloween giant the ultimate piece to add to collections and wow onlookers. Customers who want the original SKELLY can find him in stores at his original price of $299.
Giant-Sized Value
For customers looking to build out their giant collections at an equally massive value, The Home Depot expands its roster of giants with the 11 FT Grave & Bones™ Giant-Sized LED Mummy, which features motion-activated LED illumination, poseable shoulders to adjust the reach and customizable wrappings, and the 8 FT Wicked Woods™ Giant-Sized Animated LED Perilous Plant Monster, which startles passersby with an intricate bone-and-vine design, motion-triggered head movements and glowing LED features.
Interactive Frights & Next-Generation Animatronics
Every seafaring pirate needs a parrot, and the 5 FT Dead Water™ Animated LED Rotwing Parrot™ keeps customers entertained with its new interactive, conversational technology. Ask this undead parrot yes or no questions and get unique responses with head and mouth animation. This bony bird keeps visitors chatting.
Introducing an impish new energy to outdoor displays, the 5.5 FT Wicked Woods™ Animated LED Evil Pixie™ brings a high-profile scare factor home with three synchronized animatronic movements complemented by three haunting sound effects and glowing red LED eyes.
The 12 FT Giant-Sized SKELLY animatronic isn't the only fan favorite getting an upgrade. The 7 FT Lethal Lily returns with app-controlled features that let homeowners customize what she says and how she moves, including six sinister, pre-recorded or custom phrases and five adjustable movements for the head, mouth, eyes, arm and hand.
Storage Solutions for Lasting Memories
To help customers keep their Halloween treasures in top condition for years to come, The Home Depot offers practical storage solutions like the Home Accents Holiday™ Décor Storage Bag and the colossal Husky™ 170-Gallon Pro Grip™ Storage Tote. This massive tote helps Halloween enthusiasts protect and preserve larger-than-life skeletons and animatronics while they rest in garages and crawl spaces until next season.
The Home Depot launches its 2026 Halloween collection online starting Thursday, July 16, while supplies last. With free delivery on over 2 million items and same-day or next-day delivery on select products, customers can start building their Halloween displays before products arrive in stores this fall.
About The Home Depot
The Home Depot is the world's largest home improvement specialty retailer. At the end of the first quarter of fiscal 2026, the company operated a total of 2,361 retail stores and over 1,280 SRS locations across all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The Company employs over 470,000 associates. The Home Depot's stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the Dow Jones industrial average and Standard & Poor's 500 index.
Home Depot (HD - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this home-improvement retailer have returned +4.5% over the past month versus the Zacks S&P 500 composite's +4.3% change. The Zacks Retail - Home Furnishings industry, to which Home Depot belongs, has gained 5.2% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Home Depot is expected to post earnings of $4.71 per share, indicating a change of +0.6% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $15.01 points to a change of +2.2% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $16.21 indicates a change of +8% from what Home Depot is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Home Depot is rated Zacks Rank #4 (Sell).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Home Depot, the consensus sales estimate for the current quarter of $47.5 billion indicates a year-over-year change of +4.9%. For the current and next fiscal years, $171.65 billion and $178.54 billion estimates indicate +4.2% and +4% changes, respectively.
Last Reported Results and Surprise HistoryHome Depot reported revenues of $41.77 billion in the last reported quarter, representing a year-over-year change of +4.8%. EPS of $3.43 for the same period compares with $3.56 a year ago.
Compared to the Zacks Consensus Estimate of $41.49 billion, the reported revenues represent a surprise of +0.67%. The EPS surprise was +0.88%.
Over the last four quarters, Home Depot surpassed consensus EPS estimates two times. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Home Depot is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Home Depot. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
On July 10, 2026, The Home Depot Inc (HD) shares rose 1.4% to a current price of $343.30. The stock has experienced significant volatility over the past year, t
In the latest close session, Home Depot (HD - Free Report) was down 2.61% at $336.21. The stock's performance was behind the S&P 500's daily loss of 0.28%. Elsewhere, the Dow saw a downswing of 1.09%, while the tech-heavy Nasdaq appreciated by 0.2%.
The stock of home-improvement retailer has risen by 7.43% in the past month, leading the Retail-Wholesale sector's gain of 0.18% and the S&P 500's gain of 1.64%.
The investment community will be closely monitoring the performance of Home Depot in its forthcoming earnings report. The company is scheduled to release its earnings on August 18, 2026. The company's upcoming EPS is projected at $4.71, signifying a 0.64% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $47.5 billion, up 4.92% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $15.01 per share and revenue of $171.65 billion, indicating changes of +2.18% and +4.23%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Home Depot. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Home Depot is currently a Zacks Rank #4 (Sell).
With respect to valuation, Home Depot is currently being traded at a Forward P/E ratio of 22.99. Its industry sports an average Forward P/E of 22.99, so one might conclude that Home Depot is trading at no noticeable deviation comparatively.
We can also see that HD currently has a PEG ratio of 3.99. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Home Furnishings industry currently had an average PEG ratio of 1.92 as of yesterday's close.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 188, positioning it in the bottom 24% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow HD in the coming trading sessions, be sure to utilize Zacks.com.
More than 20,000 home improvement products now available tax-free for delivery to overseas military bases
, /PRNewswire/ -- The Home Depot today announced the expansion of its partnership with the Military Exchanges to include delivery to Army Post Office (APO), Fleet Post Office (FPO) and Diplomatic Post Office (DPO) addresses, providing overseas military communities with tax-free access to more than 20,000 home improvement products.
Available through the Army & Air Force Exchange Service (AAFES) and Navy Exchange Service Command (NEXCOM), the expanded program enables eligible military exchange shoppers to purchase products from The Home Depot and have them delivered directly to overseas military bases. The program will serve military families stationed at more than 750 overseas bases across more than 80 countries.
"The Home Depot has proudly supported military service members, veterans and their families for decades," said Jordan Broggi, EVP Customer Experience and President – Online, The Home Depot. "Expanding delivery through APO, FPO and DPO addresses helps ensure military communities serving around the world have convenient access to the home improvement products they need, no matter where they are stationed."
Eligible military exchange shoppers—including active-duty service members, National Guard members, Reservists, retirees, honorably discharged veterans and authorized civilians—can access the program through AAFES and NEXCOM online shopping platforms. Eligible shoppers living stateside may also purchase products and send them to friends or family members residing at APO, FPO or DPO addresses overseas.
The expanded offering provides access to more than 20,000 products across a variety of home improvement categories. Delivery is facilitated through USPS in accordance with military mailing and security requirements.
The new APO/FPO/DPO delivery capability officially launches July 8, 2026.
About The Home Depot
The Home Depot is the world's largest home improvement specialty retailer. At the end of the first quarter of fiscal 2026, the company operated more than 2,300 retail stores, over 800 branches and more than 780 distribution centers across North America. The Home Depot employs more than 470,000 associates. The Home Depot's stock is traded on the New York Stock Exchange (NYSE: HD).
Deciding between a reliable home improvement giant and a high-end luxury disruptor depends on your appetite for risk and growth. Here is how Home Depot (HD +0.51%) and RH (RH +0.70%) stack up today.
Home Depot dominates the broad DIY and professional markets with massive scale, while RH targets the affluent luxury lifestyle segment through international expansion and hospitality. Investors compare them because both rely on the health of the retail sector and broader housing trends to drive sales growth.
The case for Home DepotHome Depot operates as a home improvement specialty retailer serving DIY customers and professional contractors, such as renovators and trade professionals. The business supports these groups through an interconnected network of stores and digital platforms across North America. These moves help the company capture more share among retail stocks by targeting complex project needs through its acquisitions of SRS and GMS.
In FY 2025, revenue reached nearly $164.7 billion, representing growth of approximately 3.2% over the previous year. Net income for the fiscal period was close to $14.2 billion. This figure was slightly lower than the roughly $14.8 billion recorded in FY 2024, reflecting a slight contraction in net margin from 9.3% to 8.6%.
As of its February 2026 balance sheet, the debt-to-equity ratio is approximately 5.1x, meaning total debt, including short-term and long-term borrowings, is 5.1 times the value of shareholder equity. The current ratio, which measures a company's ability to cover short-term debts with short-term assets, is roughly 1.1x. Free cash flow, calculated as cash flow from operations minus capital expenditures, was nearly $12.6 billion during the year.
The case for RHRH functions as a luxury lifestyle brand, offering high-end home furnishings through a unique ecosystem of galleries and sourcebooks. The company is actively expanding its international footprint and diversifying into hospitality experiences like restaurants and luxury guesthouses. These initiatives aim to transform the brand into a comprehensive luxury lifestyle provider that serves a high-end consumer base and professional interior designers.
For FY 2025, revenue reached $3.4 billion, indicating growth of about 8.1% compared to the prior year. Net income reached approximately $124.8 million during the same period. This was an increase from the roughly $72.4 million in net income reported for FY 2024, showing progress in the company's turnaround efforts.
As of its January 2026 balance sheet, the debt-to-equity ratio is roughly 65.5x, meaning total debt, including short-term and long-term borrowings, is much higher than shareholder equity. The current ratio, which also measures the ability to pay short-term debts with current assets, is approximately 1.2x. Free cash flow, defined as cash flow from operations minus capital expenditures, reached close to $252.4 million.
Risk profile comparisonHome Depot faces intense competition from digital retailers like Amazon and must adapt to shifting consumer preferences and shopping habits. The company also deals with high sensitivity to housing market volatility and shifting tariff policies that affect commodity costs.
RH manages significant execution risks as it develops hospitality concepts and expands into complex real estate projects internationally. The business also carries substantial financial leverage and depends on foreign manufacturing in Asia, which exposes it to supply chain disruptions and trade duties.
Valuation comparisonRH carries a higher forward P/E, which measures price against future earnings estimates, while its P/S ratio compares market value to sales.
MetricHome DepotRhSector BenchmarkForward P/E23.3x32.3x28.6xP/S ratio2.1x0.9xN/ASector benchmark uses the SPDR XLY sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Home Depot and RH both depend on the demand trends of the housing sector, which tend to be cyclical and tied closely to interest rates. High interest rates and inflation pressure have challenged both stocks, with Home Depot down about 3% over the last year on a total return basis and RH losing a larger 17%, as of July 1. Over the past five years, Home Depot has returned a gain of 25% while RH has demonstrated an even steeper decline: down 76%. While past results don’t guarantee future performance, the disparity points to the key ideological difference between Home Depot and RH stocks.
Home Depot has long been cited as a relatively safe investment — catering to both retail customers and professional contractors, enjoying a wide geographic reach within the U.S., and paying a 2.64% dividend that rewards patient investors. Indeed, without the dividend reinvested, Home Depot’s five-year performance drops to just shy of a 10% gain. It’s probably a better bet than RH for investors who are looking for stability and income, but it’s unlikely to deliver blockbuster results.
The case for RH is similar to that of American Express: It caters to a wealthier, more exclusive clientele that tends to have more consistent and higher spending regardless of economic conditions. Its luxury brand is its own kind of moat, and it’s still in growth mode, taking on substantial debt now to build a brand that could pay off big-time down the road. If you’re willing to bet on the story, it could be an attractive time to buy in, but the future appears murky and isn’t without risk.
Home Depot (HD - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this home-improvement retailer have returned +12.9% over the past month versus the Zacks S&P 500 composite's -2.9% change. The Zacks Retail - Home Furnishings industry, to which Home Depot belongs, has gained 8.9% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Home Depot is expected to post earnings of $4.71 per share for the current quarter, representing a year-over-year change of +0.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.
For the current fiscal year, the consensus earnings estimate of $15.01 points to a change of +2.2% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $16.21 indicates a change of +8% from what Home Depot is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Home Depot is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Home Depot, the consensus sales estimate for the current quarter of $47.5 billion indicates a year-over-year change of +4.9%. For the current and next fiscal years, $171.65 billion and $178.54 billion estimates indicate +4.2% and +4% changes, respectively.
Last Reported Results and Surprise HistoryHome Depot reported revenues of $41.77 billion in the last reported quarter, representing a year-over-year change of +4.8%. EPS of $3.43 for the same period compares with $3.56 a year ago.
Compared to the Zacks Consensus Estimate of $41.49 billion, the reported revenues represent a surprise of +0.67%. The EPS surprise was +0.88%.
Over the last four quarters, Home Depot surpassed consensus EPS estimates two times. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Home Depot is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Home Depot. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Home Depot (HD - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Home Depot currently has an average brokerage recommendation (ABR) of 1.90, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 36 brokerage firms. An ABR of 1.90 approximates between Strong Buy and Buy.
Of the 36 recommendations that derive the current ABR, 20 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 55.6% and 2.8% of all recommendations.
Brokerage Recommendation Trends for HD
Check price target & stock forecast for Home Depot here>>>
While the ABR calls for buying Home Depot, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in HD?In terms of earnings estimate revisions for Home Depot, the Zacks Consensus Estimate for the current year has declined 0% over the past month to $15.01.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Home Depot. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for Home Depot with a grain of salt.
Home Depot (HD - Free Report) closed the most recent trading day at $348.86, moving +1.12% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.05%. On the other hand, the Dow registered a loss of 0.09%, and the technology-centric Nasdaq decreased by 0.24%.
The home-improvement retailer's shares have seen an increase of 7.41% over the last month, surpassing the Retail-Wholesale sector's loss of 7.87% and the S&P 500's loss of 1.42%.
Market participants will be closely following the financial results of Home Depot in its upcoming release. In that report, analysts expect Home Depot to post earnings of $4.71 per share. This would mark year-over-year growth of 0.64%. Meanwhile, our latest consensus estimate is calling for revenue of $47.5 billion, up 4.92% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $15.01 per share and revenue of $171.65 billion, which would represent changes of +2.18% and +4.23%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Home Depot. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% decrease. Currently, Home Depot is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Home Depot is presently trading at a Forward P/E ratio of 22.98. For comparison, its industry has an average Forward P/E of 22.98, which means Home Depot is trading at no noticeable deviation to the group.
Also, we should mention that HD has a PEG ratio of 3.98. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Home Furnishings industry had an average PEG ratio of 2.05 as trading concluded yesterday.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 230, this industry ranks in the bottom 6% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Home Depot (NYSE:HD | HD Price Prediction) is the largest home improvement retailer in America, and right now it is caught between two stories. The fundamentals are steady while the stock has drifted lower.
Shares trade at $324.45 after slipping 4.3% year to date, while management just reaffirmed full-year guidance and pushed comparable sales back into positive territory. The question I want to answer is straightforward. Can HD reach $400 per share by 2027, and what has to happen for it to get there?
Why Home Depot Shares Are Stuck Despite Stable Demand The market is punishing patience. HD is down 6.63% over the past year and off 3.75% in the last week alone, even though Q1 FY2026 revenue grew 4.8% to $41.77B with comparable sales of +0.6%. The drag is housing.
Customer transactions fell 1.3% year over year, and CEO Ted Decker acknowledged “greater consumer uncertainty and housing affordability pressure” on the Q1 call.
Add in SRS Distribution intangible amortization of roughly $119M per quarter compressing reported margins, and you have a stock that looks tired. With a beta of just 0.974, HD is not going to rip higher on sentiment alone. It needs a catalyst.
Wall Street Sees 14% Upside. Our Model Says 18% Consensus is constructive but cautious. The Street’s average target sits at $370.18, with 4 Strong Buy, 18 Buy, 14 Hold, and zero Sell ratings. Our base case model puts fair value at $382.85, an 18% upside, with confidence at 90% and a bull scenario reaching $429.92.
I think analysts are anchoring too tightly to the next four quarters. With 61% bullish sentiment and earnings growth contribution running slightly negative at -0.004, the consensus is pricing in a status-quo housing market. Any normalization of mortgage rates flips that math fast.
The Path to $400 Per Share Here is the math. Reaching $400 from today’s price of $324.45 would require a gain of 23.3%. With forward EPS of $16.31, a price of $400 implies a forward P/E of 25x. Our base case of $382.85 already implies 22x, meaning the bold target requires roughly 2.3 turns of additional multiple expansion. That is achievable.
The 247Factor adjustment of 1.066 is driven by a 1.05 Consumer Cyclical sector multiplier and 0.037 analyst consensus contribution, dampened 50% for mega-cap size. Average ticket rose 2.2% to $92.76, SRS now operates over 1,280 locations, and Decker noted underlying demand was “relatively stable”. The risk is a deeper housing recession that pushes comps negative.
Where Home Depot Trades Today vs Its Earnings Power At $324.45 against forward EPS of $16.31, HD trades at a forward P/E of 20x. That is below its trailing multiple of 23 and a steep discount to its $418.06 52-week high. The stock sits closer to its $286.95 52-week low than its highs.
Over the past decade, HD has delivered a 227.13% return, a reminder that buying quality compounders during housing slowdowns has historically paid. Today’s multiple looks cheap if FY2027 EPS reaccelerates.
Is $400 Realistic? Here’s My Take $400 by 2027 requires a gain of 23.3% from here, modest multiple expansion to 24.5x, and a housing market that stops actively hurting. I think it is realistic.
Three things need to happen: comps need to push toward the high end of the flat to +2.0% guidance, SRS and GMS need to keep adding incremental revenue, and mortgage rates need to drift lower to thaw transaction volume.
A renewed housing recession derails it. Returns at this level shouldn’t be expected every year, but we’ve outlined the blueprint for how Home Depot could reach $400 in 2027.
People shop for lumber from a Home Depot store in Alhambra, California on April 10, 2025. Lumber tariffs are already impacting businesses from home remodeling to construction projects as about 70-80 percent of the lumber imported by the United States comes from Canada. (Photo by Frederic J. BROWN / AFP) (Photo by FREDERIC J. BROWN/AFP via Getty Images)
AFP via Getty Images
Once again, the mainstream crowd is wrong—this time on real estate. And they’re wrong for the same reason they always are: They’re looking at the wrong numbers.
We’re fine with that. We saw it coming.
And we’re ready to profit through an overlooked dividend grower that throws off $14 billion in yearly cash flow. It hands much of that to us as share buybacks and a dividend that’s jumped 11% annualized in the last five years.
We haven’t seen an opportunity like this since 2021. Back then, pandemic restrictions kicked off a home-renovation bonanza. Another one is getting started now.
Welcome to “Home Reno Boom 2.0”Today, six years after COVID forced me to turn my patio into Puerto Backyarda (complete with a “misting fan” from Home Depot—hint!), homeowners are pouring another wave of cash into their abodes.
Thankfully, it’s for a different reason: Mortgage rates are high, and those who did buy homes in the rock-bottom-rate days of 2020 and 2021 are loath to move—and lose their bargain-basement 30-year mortgage rates.
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The answer? Stay put—and reno your current place.
Many of those folks have also built up a lot of equity since 2021, and they’re tapping it to remodel that kitchen or bathroom they’re tired of looking at.
Last year, for example, they were busy setting up home-equity lines of credit (HELOCs), the number of which jumped 14.3% in the fourth quarter. This year, the total spend on remodeling is projected to jump to $518 billion.
So the money is there. The motivation is there. Now here’s the real trigger for Reno Boom 2.0: The typical American home is now 44 years old.
These houses need new roofs. They need new pipes. The HVAC is about to wheeze its last breath. None of these problems care about interest rates, Middle East conflicts or AI. They need to be fixed—stat.
That’s where Home Depot (HD), the world’s largest home-improvement retailer, comes in.
As I write, little to none of this reno demand is priced into the stock, which has fallen as the crowd assumes HD is going nowhere until home sales pick up. The reno story? They missed the memo.
That’s okay—we’re happy to fill them in!
Another reason why HD is a buy now is that the stock’s decline has sent its dividend yield higher (as yields and prices move in opposite directions). As I write, it’s just below 3% and near a peak we haven’t seen since, yes, the 2020 COVID crash:
HD Yield Chart
Ycharts
A buy now locks in that yield, which is nearly triple what the typical S&P 500 stock pays. Doing so also gives us a nice yield on cost to build from, with HD’s payout hikes averaging 11% annualized over the past five years.
And no, I don’t expect that yield to stick around, for another reason: AI. As it marches through the economy, it’s weighing on hiring and capping wage growth. That’s already happening, with wages gaining 3.6% in April, well behind the May CPI print of 4.2%.
In other words, AI is a deflation machine. As it spreads, CPI—and rates—will likely fall.
Renos Now, a New Address LaterHomeowners, by the way, are somewhat insulated here, as they tend to have higher incomes than the public-at-large.
As lower rates arrive, they’ll tempt more homeowners to move, as the “rate penalty” for ditching their current mortgage eases. That sets up a tidy “2-step” catalyst for HD: a reno boom now, followed by a “handoff” to a fresh round of homebuying as rates fall.
And, again, none of this is priced into the stock.
As I write this, HD is more than 25% off the all-time high it hit in late 2024. That’s absurd for a company generating $14 billion in yearly free cash flow—a total that’s been growing strongly in the last decade:
HD Cash Flow
Ycharts
Management, meanwhile, is returning as much of that cash as possible: In the last decade, HD has bought back 17% of its outstanding shares and hiked the dividend a rich 238%. Thanks to that growth, an investor would be yielding 7.3% on a buy made then.
That sturdy payout growth has fueled HD’s “Dividend Magnet”—or the tendency of a rising dividend to pull the share price higher. You can see that in the chart below.
HD Dividend Magnet
Ycharts
You can also see that the orange line (the share price) has split from the purple staircase since about last fall. That’s our upside: When that gap closes, we collect the difference.
Meantime, HD is catching a lot more of what contractors spend on projects through its Pro Desk, which, thanks to a couple of recent acquisitions, makes the company a top-to-bottom supplier for contractors.
That’s a big deal: Five years back, a contractor who’d just, say, landed a big kitchen job would have had to call three or four different suppliers to get what they needed. Now they can wander into the local Home Depot’s Pro Desk (or better yet order through the online platform) and everything arrives from one source, on one truck.
Contractors need these materials whether the housing market is booming or busting, especially as American homes age. That alone makes Home Depot’s revenue base stickier—and more recession-resistant—than Wall Street gives it credit for.
AI-Powered Tools Make Contractors Faster (and Home Depot Busier)Let’s wrap with another way AI is speeding up HD’s business: The company recently rolled out AI-powered tools that convert construction blueprints into material lists in days rather than weeks.
Voice prompts, uploaded documents, text descriptions—throw anything at it and the system spits out a shopping list ready for checkout and delivery. This means AI isn’t replacing contractors—it’s making them faster. And the faster they work, the more projects they take on, and the more materials they order from … you guessed it.
Add it up and you get a company that’s building resilience and growth at the same time. That sets us up for faster payout hikes and Dividend Magnet–powered price gains. And thanks to the lack of love from Wall Street, we’re getting in at a bargain, to boot.
Brett Owens is Chief Investment Strategist for Contrarian Outlook. For more great income ideas, get your free copy his latest special report: Your Early Retirement Portfolio: Huge Dividends—Every Month—Forever.
It has been about a month since the last earnings report for Home Depot (HD - Free Report) . Shares have added about 5.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Home Depot due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for The Home Depot, Inc. before we dive into how investors and analysts have reacted as of late.
Home Depot's Q1 Earnings Beat Estimates, Comparable Sales Up 0.6%Home Depot delivered first-quarter fiscal 2026 results that topped the Zacks Consensus Estimate on both the top and bottom lines. Adjusted earnings were $3.43 per share, down 3.7% from the year-ago quarter but came above the consensus mark of $3.40.
Net sales rose 4.8% year over year to $41.77 billion and beat the consensus estimate of $41.49 billion. Customer transactions totaled 391.1 million, down 0.9% year over year, while average ticket increased 2.3% to $92.76. The underlying business demand has been relatively similar to the trends seen throughout fiscal 2025, amid consumer uncertainty and housing affordability pressure.
Comparable sales (comps) increased 0.6% in the quarter, with U.S. comps up 0.4%. Foreign exchange rates provided an additional lift, contributing roughly 55 basis points (bps) to comps.
Home Depot’s Costs & Margin DetailsGross profit increased 2.4% to $13.78 billion, supported by the higher sales. However, the cost of sales rose faster than revenues, putting gross margin under pressure compared with the prior-year period. The gross margin was 33%, down 80 bps year over year. Our model predicted a 90-bps year-over-year decline in the gross margin to 32.9% for the fiscal first quarter.
Selling, general and administrative (SG&A) expenses of $7.77 billion increased 5.7% from $7.96 billion in the year-ago quarter. As a percentage of sales, SG&A was 19.1%, up roughly 20 bps year over year.
Adjusted operating income was $5.15 billion, down 2.3% year over year, while the operating margin of 12.3% contracted 90 bps year over year.
HD’s Other Financial UpdatesHome Depot ended first-quarter fiscal 2026 with cash and cash equivalents of $1.60 billion, long-term debt (excluding current installments) of $44.8 billion and stockholders’ equity of $13.9 billion. In first-quarter fiscal 2026, the company generated $6.03 billion of net cash from operating activities.
Merchandise inventories were $27.28 billion and net receivables were $6.62 billion at quarter-end. The company reinvested $844 million in capital expenditures during the quarter and spent $286 million, net, on businesses acquired. Home Depot returned cash to shareholders through dividends, paying $2.32 billion in the period.
Home Depot Reaffirms Fiscal 2026 OutlookManagement reaffirmed its fiscal 2026 framework, calling for total sales growth of approximately 2.5-4.5% and comparable sales growth of roughly flat to 2%. The company also expects to open about 15 stores this year.
For fiscal 2026, Home Depot continues to project gross margin around 33.1% and operating margin of approximately 12.4-12.6%, with adjusted operating margin expected in the 12.8-13.0% range. It expects capital expenditures of roughly 2.5% of total sales. The company anticipates an effective tax rate of about 24.3%, net interest expense of roughly $2.3 billion, and earnings per share growth of approximately flat to 4.0% from $14.23 in fiscal 2025.
How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.
VGM ScoresCurrently, Home Depot has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Home Depot has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Home Depot (HD - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this home-improvement retailer have returned +6.5% over the past month versus the Zacks S&P 500 composite's +1.4% change. The Zacks Retail - Home Furnishings industry, to which Home Depot belongs, has gained 10.3% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Home Depot is expected to post earnings of $4.71 per share for the current quarter, representing a year-over-year change of +0.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.
For the current fiscal year, the consensus earnings estimate of $15.01 points to a change of +2.2% from the prior year. Over the last 30 days, this estimate has changed +0.1%.
For the next fiscal year, the consensus earnings estimate of $16.21 indicates a change of +8% from what Home Depot is expected to report a year ago. Over the past month, the estimate has changed -0.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Home Depot.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Home Depot, the consensus sales estimate for the current quarter of $47.5 billion indicates a year-over-year change of +4.9%. For the current and next fiscal years, $171.65 billion and $178.54 billion estimates indicate +4.2% and +4% changes, respectively.
Last Reported Results and Surprise HistoryHome Depot reported revenues of $41.77 billion in the last reported quarter, representing a year-over-year change of +4.8%. EPS of $3.43 for the same period compares with $3.56 a year ago.
Compared to the Zacks Consensus Estimate of $41.49 billion, the reported revenues represent a surprise of +0.67%. The EPS surprise was +0.88%.
Over the last four quarters, Home Depot surpassed consensus EPS estimates two times. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Home Depot is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Home Depot. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
With $41.8 billion in first-quarter 2026 (ended May 3) revenue, Home Depot (HD +3.21%) dominates the home improvement market. Its leadership position has allowed it to earn consistent profits through various economic cycles. This has directly benefited investors who receive steady income from their positions.
Here's how many shares of this top retail stock you'd need to generate $10,000 in yearly dividends.
Image source: The Motley Fool.
Home Depot pays a quarterly dividend of $2.33 per share, for a total of $9.32 annually. This means that investors need 1,073 shares to collect $10,000 in dividends over a full year.
The stock's 2.77% dividend yield is strong. It's nearly three times larger than what the S&P 500 index provides, and the payout has increased 238% in the past decade.
Today's Change
(
3.21
%) $
10.41
Current Price
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334.86
Investors should come away impressed by Home Depot's commitment to shareholders. The business has now paid a dividend for 157 straight quarters (just over 39 years). This presents a compelling opportunity for market participants seeking a dependable income stream.
The macro environment has been a headwind for Home Depot, though. Its same-store sales trends have been soft, as households aren't inclined to spend on costly renovation projects during a period of above-normal inflation and elevated interest rates.
However, the fact that the company is still able to continue returning capital to investors is a sign of its healthy financial position.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool has a disclosure policy.
Home Depot remains a "Hold" as shares appear fairly valued with technicals signaling a challenging setup. Q1 results beat expectations, but guidance was uninspiring; currency headwinds and tepid EPS growth outlook persist. HD's strategic shift toward the pro market may drive higher average tickets but increases cyclicality and risk exposure.
Key Takeaways Home Depot's Q1 sales rose 4.8% y/y to $41.8B, while comps inched up 0.6% amid subdued demand.Home Depot's gross margin fell 75 bps to 33%, but management reaffirmed its full-year margin guidance.Pro sales outpaced DIY demand, supported by digital growth, market-share gains and acquisitions. The Home Depot Inc.’s (HD - Free Report) ability to sustain margin strength is becoming increasingly important as demand across the home improvement sector remains subdued. In the first quarter of fiscal 2026, the company reported sales growth of 4.8% to $41.8 billion, while comparable sales inched up 0.6%, reflecting a demand environment that management described as largely unchanged from fiscal 2025. Housing affordability pressures, elevated mortgage rates, and muted large-scale remodeling activity continue to weigh on customer spending.
Despite these headwinds, Home Depot is demonstrating resilience through operational execution and strategic investments. The company continues to gain market share, supported by strength in professional customers, digital sales growth exceeding 10% and expanding capabilities through acquisitions such as SRS, GMS and Mingledorff’s. Management highlighted that Pro sales outperformed DIY demand, with complex purchase occasions showing strongest growth, underscoring the effectiveness of its “winning the Pro” strategy.
From a margin perspective, the fiscal first-quarter gross margin declined 75 basis points (bps) to 33% due to the GMS acquisition and pricing investments at SRS. However, management emphasized that the core Home Depot business maintained a stable margin profile, while reaffirming its full-year gross margin guidance of 33.1% and the adjusted operating margin outlook of 12.8-13%.
The key question is whether margin stability can compensate for sluggish demand. While disciplined cost management, operational efficiencies and a richer Pro mix can help protect profitability, sustained earnings growth will ultimately require stronger project demand. For now, Home Depot’s margin resilience, market-share gains and strategic expansion provide a meaningful buffer against demand challenges, allowing the company to navigate a prolonged housing downturn while positioning itself for growth.
How Are LOW & WSM Faring in Terms of Profit Margins?While Home Depot has long been known for its strong profitability, investors are also closely watching how peers Lowe’s Companies Inc. (LOW - Free Report) and Williams-Sonoma Inc. (WSM - Free Report) are performing on the margin front amid a challenging demand environment.
Lowe’s is facing weak DIY demand, elevated rates and low housing turnover, but margin discipline is helping cushion the pressure. In first-quarter fiscal 2026, comps rose 0.6%, while the gross margin fell 70 bps to 32.7% due mainly to acquisition dilution. SG&A leveraged 17 bps, supported by cost controls and productivity initiatives. Management reaffirmed its 11.6-11.8% adjusted operating margin outlook, signaling confidence despite demand challenges.
Williams-Sonoma is demonstrating that strong margins can help offset broader demand uncertainties. In first-quarter fiscal 2026, the company posted a 4.8% comps increase and delivered an operating margin of 16.2%, exceeding expectations despite absorbing higher tariffs and fuel costs. Supply-chain efficiencies, disciplined cost management and strong full-price selling helped mitigate margin pressures. While management remains cautious about the macro environment, its profitability and execution provide a meaningful cushion against demand volatility.
HD’s Price Performance, Valuation & EstimatesShares of Home Depot have lost 3.1% in the past six months versus the industry’s decline of 4.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, HD trades at a forward price-to-earnings ratio of 21.6X compared with the industry’s average of 19.95X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HD’s fiscal 2026 and fiscal 2027 EPS implies year-over-year growth of 4.2% and 2.2%, respectively. The company’s EPS estimates for fiscal 2026 and 2027 have moved down 0.3% and 0.9%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
Home Depot currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Home Depot (NYSE:HD | HD Price Prediction) is the largest home improvement retailer in America, and right now it’s stuck in a frustrating holding pattern.
CEO Ted Decker told investors after Q1 that “the underlying demand in our business was relatively similar to what we saw throughout fiscal 2025, despite greater consumer uncertainty and housing affordability pressure.” Translation: the business is fine, the macro is not. Shares are down 3.89% YTD while consumer spending grinds higher. So can HD really hit $450 by 2028? Let’s run the math.
What’s Holding Home Depot Back Right Now The issue is the housing cycle. Existing home turnover remains depressed, big-ticket remodel demand has been soft, and customer transactions fell 1.3% in Q1 FY2026. GAAP operating margin compressed to 11.9% from 12.9% as SRS Distribution amortization weighed on profitability.
Shares have fallen 7.13% over the past year and sit 11% below the 52-week high of $418.06. With a beta of 0.974, this is a slow grind that has tested patience. The recent 5.18% one-week bounce hints sentiment may be turning, but the housing overhang is real.
Wall Street Sees Modest Upside. Our Model Sees More Wall Street’s consensus price target sits at $370.18, with 4 Strong Buy, 18 Buy, and 14 Hold ratings, no Sell calls. That is a polite shrug. Our base case lands at $373.86 for a 14.68% two-year return, with a bull case of $426.42 and a bear case of $339.18. Our confidence sits at 90%, which is high.
I think analysts are anchoring too hard on FY26 guidance and underweighting what happens when housing turnover normalizes. With 61% of analysts bullish and insiders net buying across 54 recent transactions, the conviction is quietly building.
The Path to $450 Per Share Here is the math. Reaching $450 from today’s price of $326.01 would require a gain of 38%. With forward EPS of $16.31, a price of $450 implies a forward P/E of 28x. Our base case of $373.86 already implies 22x, meaning the bold target requires roughly 5x of additional multiple expansion.
Is that achievable? I think yes, under the right conditions. Our 247Factor adjustment came in at 1.061, driven by moderate analyst optimism (+0.037 contribution) and a mega-cap dampening that limits upside math. But the bigger story is the macro.
BEA data shows furnishings spending climbed to $527.5B in April 2026 from $516.7B in January, and housing services spending reached $3,930.7B. If mortgage rates ease and remodel demand reawakens, FY27 and FY28 EPS could push well past $17.
Layer in SRS and GMS contributions scaling, and a 27x multiple on rising earnings becomes defensible. The primary risk: a prolonged housing recession that keeps comps flat into 2028.
Where Home Depot Trades Today vs Its Earnings Power At $326.01, HD trades at a forward P/E of 20x, which strikes me as cheap for a business with 128.4% ROE and 156 consecutive dividend payments.
Shares sit between a 52-week low of $286.95 and high of $418.06. Over the past decade, HD has returned 224.88%, a reminder that patience here usually pays. The current valuation reflects cycle pessimism, not structural decline.
Is $450 Realistic? Here’s My Take Reaching $450 by 2028 requires a 38% gain from here. I think it is a stretch but not a long shot.
Three things need to go right: housing turnover normalizes by late 2027, SRS and GMS integration drives operating margin back above 13%, and the Fed cuts enough to revive big-ticket projects.
What derails it? A second leg lower in housing that keeps comps negative into FY27. Returns at this level shouldn’t be expected every year, but we’ve outlined the blueprint for how Home Depot could reach $450 in 2028.
La donación a Boys & Girls Clubs of America respaldará programas de fútbol, el desarrollo de la fuerza laboral y otras iniciativas dirigidas a la juventud del sur de California
, /PRNewswire-HISPANIC PR WIRE/ -- Mientras la Selección Nacional Masculina de EE. UU. inicia su camino en la Copa Mundial de la FIFA 26™ en Los Ángeles, The Home Depot celebra el momento con una donación de $250,000 para apoyar a Boys & Girls Clubs of America en toda la región metropolitana de Los Ángeles.
La inversión respaldará una variedad de iniciativas dirigidas a la juventud local, que incluyen programas de fútbol, oportunidades de desarrollo laboral y otros programas comunitarios de los clubes en todo el sur de California.
Como socio estratégico de U.S. Soccer y promotor del crecimiento continuo de este deporte en Estados Unidos, The Home Depot ayuda a generar mayor acceso y oportunidades para la próxima generación de jugadores, aficionados y comunidades vinculadas al juego.
"Con los ojos del mundo puestos en el debut de la Selección Nacional Masculina de EE. UU. en la Copa Mundial en Los Ángeles, nos enorgullece invertir en las comunidades que le dan tanto significado a este deporte", afirmó Allison Kolber, vicepresidenta de Marketing Integrado de The Home Depot. "Esta donación tiene como finalidad ayudar a que los jóvenes de la zona metropolitana de Los Ángeles accedan a oportunidades, generen vínculos y formen parte de la emoción que rodea a este momento histórico para el fútbol en Norteamérica".
La iniciativa refleja el firme compromiso de The Home Depot con el apoyo a las comunidades vinculadas al torneo y con la celebración del impacto positivo que el fútbol puede generar tanto dentro como fuera de la cancha.
"Nos enorgullece trabajar con excelentes socios como The Home Depot, quienes comparten nuestra convicción de que todos, en cualquier lugar, deben sentir que tienen un lugar en el fútbol. Mediante la expansión del juego, la ampliación del acceso y el aprovechamiento del fútbol como una fuerza impulsora del bienestar, podemos asegurar que el legado de este momento histórico llegue a las comunidades de toda la zona metropolitana de Los Ángeles e inspire a las próximas generaciones durante los años venideros", señaló Lex Chalat, directora ejecutiva de Soccer Forward Foundation, el brazo de impacto social de U.S. Soccer.
"A medida que crece la emoción en torno al deporte, esta inversión ayudará a que más jóvenes se beneficien de las actividades deportivas en sus comunidades", afirmó Chad Hartman, vicepresidente nacional de Alianzas Corporativas y Participación de Boys & Girls Clubs of America. "Nos enorgullece colaborar con The Home Depot para ampliar el acceso al fútbol, al tiempo que respaldamos la preparación laboral y las iniciativas de desarrollo juvenil que ayudan a los jóvenes a desarrollar confianza, adquirir habilidades para la vida y alcanzar su máximo potencial".
El contenido relacionado con la donación y la iniciativa comunitaria se difundirá en los canales propios y de redes sociales a lo largo de todo el torneo, y se planifican programas adicionales para este verano.
Acerca de The Home Depot
The Home Depot es la cadena minorista especializada en mejoras del hogar más grande del mundo. Al cierre del primer trimestre del año fiscal 2026, la empresa operaba un total de 2,361 tiendas minoristas y más de 1,280 establecimientos SRS en los 50 estados, el Distrito de Columbia, Puerto Rico, las Islas Vírgenes de EE. UU., Guam, 10 provincias canadienses y México. La empresa tiene contratados aproximadamente 470,000 empleados. Las acciones de The Home Depot se cotizan en la bolsa de valores de Nueva York (NYSE: HD) y se incluyen en el Promedio Industrial Dow Jones y el índice Standard & Poor's 500.
ACERCA DE BOYS & GIRLS CLUBS OF AMERICA
Durante más de 160 años, Boys & Girls Clubs of America (BGCA.org) ha brindado un lugar seguro para que niños y adolescentes aprendan y se desarrollen. Los Clubes ofrecen mentores adultos considerados, diversión y amistad, y programas de desarrollo juvenil de alto impacto a diario durante las horas críticas no lectivas. El programa de Boys & Girls Clubs promueve el éxito académico, el buen carácter, el liderazgo y el estilo de vida saludable. Más de 5,500 Clubes atienden a más de 4 millones de jóvenes mediante la afiliación a los Clubes y la ayuda a la comunidad. Los Clubes se encuentran en ciudades, pueblos, viviendas públicas y tierras indígenas de todo el país y atienden a familias de militares en centros juveniles afiliados a la BGCA en instalaciones militares estadounidenses de todo el mundo. La sede central nacional se encuentra en Atlanta. Más información acerca de Boys & Girls Clubs of America en Facebook y LinkedIn.
ACERCA DE U.S. SOCCER
Fundada en 1913, U.S. Soccer, una organización sin fines de lucro 501(c)(3), es el organismo rector oficial de este deporte en Estados Unidos. Nuestra visión es clara: existimos para servir al fútbol. Nuestra ambición consiste en encender una pasión nacional por el juego y realzar su poder para unir, inspirar y dignificar. Creemos que el fútbol es más que un deporte, es una fuerza impulsora del bienestar. Nos enfocamos en tres pilares: U.S. Soccer Everywhere (U.S. Soccer en todas partes), para hacer del fútbol el deporte número uno en práctica dentro de cada comunidad de Estados Unidos; U.S. Soccer is Yours (U.S. Soccer es de ustedes), para garantizar que todos sientan que el futuro del fútbol en EE. UU. les pertenece; y U.S. Soccer Success (Éxito de U.S. Soccer), para ganar torneos importantes, incluidas las Copas Mundiales. Juntos, nos corresponde a nosotros construir el futuro de este deporte. Para más información, visite ussoccer.com/ourvision.
ACERCA DE SOCCER FORWARD
La Soccer Forward Foundation es un motor clave en la visión integral de U.S. Soccer de que el fútbol es una fuerza impulsora del bienestar. Con la convicción de que el fútbol contribuye a tener comunidades más saludables, conectadas y equitativas, Soccer Forward respalda los esfuerzos de U.S. Soccer para ampliar el acceso a este deporte y ayuda a que el juego llegue a más personas y genere un cambio duradero. Soccer Forward se enfoca en habilitar y equipar a personas, lugares y programas para hacer que el deporte llegue a más comunidades en todo Estados Unidos, así como en aportar investigaciones, capacitaciones y pautas de vanguardia para demostrar la contribución del fútbol en los resultados de salud de las comunidades. Además, definirá estándares y ofrecerá apoyo comercial y técnico para desarrollar el ecosistema del fútbol femenino en todo Estados Unidos y a nivel mundial. Para más información, visite ussoccer.com/soccer-forward.
On June 01, 2026, we conducted a DCF analysis for The Home Depot Inc HD amidst a backdrop of fluctuating price performance. The stock has experienced a year-to-date decline of 7.2% and a one-year drop of 11.7%, indicating some volatility in its market position.
DCF Earnings-based intrinsic value vs price: $259.46 (margin of safety: -22.2%) DCF FCF-based intrinsic value vs price: $225.74 (second opinion) GF Score™ of 83/100, indicating a reliable assessment of the DCF inputs What Is HD Worth? DCF Earnings-Based Model The DCF earnings-based model for The Home Depot Inc HD employs a two-stage approach to estimate the intrinsic value of the stock. In the first stage, we project the earnings growth for the next ten years, followed by a terminal growth phase. The assumptions used in this model are critical for determining the intrinsic value.
Parameter Value Current EPS (TTM, excl. non-recurring) $14.57 10-Year Growth Rate 11.6% 10-Year Treasury Rate 4.47% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the growth phase (Years 1-10), we expect the EPS to grow at 11.6% per year, discounted at a rate of 11%. This results in a growth stage value of $150.10 per share. Following this, in the terminal phase (Years 11-20), the growth rate slows to 4%, also discounted at 11%, yielding a terminal stage value of $109.36 per share.
Stage Description Value Growth Stage (Years 1-10) EPS growing at 11.6%, discounted at 11% $150.10 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $109.36 Intrinsic Value Growth + Terminal $259.46 Comparing the current price of $317.14 with the intrinsic value of $259.46, we find that the stock is fairly valued, with a margin of safety of -22.2%. It is important to note that GuruFocus uses EPS excluding non-recurring items because research indicates that stock prices correlate more closely with earnings than with free cash flow. For a detailed calculation, visit the HD DCF Calculator.
What Does the Free Cash Flow DCF Say? The free cash flow (FCF) based intrinsic value for The Home Depot Inc HD is calculated at $225.74. When comparing this to the earnings-based intrinsic value of $259.46, we observe a divergence in the two models. The FCF model suggests that the stock is modestly overvalued, with a margin of safety of -40.5%.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for The Home Depot Inc HD is calculated at $380.36, providing a third perspective on valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. When comparing all three models, we see that the DCF earnings model suggests fair valuation, the FCF model indicates modest overvaluation, and GF Value™ suggests the stock is undervalued. For more insights, visit the GF Value™ page.
What Does HD's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have historically generated higher long-term returns (backtested from 2006 to 2021).
Metric Rating GF Score™ 83/100 Financial Strength 5/10 Profitability 8/10 Growth 7/10 Valuation 10/10 Momentum 5/10 With a predictability rank of 1/5 stars, the DCF model's reliability for this stock is lower, indicating that investors should be cautious when relying solely on this analysis. For more information, visit the HD stock page.
Key Assumptions and Limitations It is important to recognize that DCF models are highly sensitive to assumptions regarding growth rates and discount rates. Stocks with low predictability ratings, such as The Home Depot Inc HD , tend to produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not fully capture future market conditions.
What This Means for Investors In synthesizing the findings from the DCF earnings model, the DCF FCF model, and the GF Value™, we conclude that The Home Depot Inc HD is currently fairly valued according to the earnings-based DCF model, modestly overvalued according to the FCF model, and undervalued according to the GF Value™. This mixed assessment suggests a cautious approach for potential investors. For the full DCF analysis, visit the HD DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is HD's intrinsic value based on DCF?
Answer: earnings-based $259.46, FCF-based $225.74
Is HD overvalued or undervalued?
Answer: The consensus indicates mixed results, with the DCF FCF model suggesting overvaluation and GF Value™ indicating undervaluation.
How reliable is the DCF model for HD?
Answer: The predictability rank of 1/5 suggests that the DCF model may be less reliable for this stock.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways Home Depot delivered 4.8% sales growth and a 0.6% comparable-sales increase in Q1'26.Home Depot's digital sales rose more than 10% y/y, the fourth straight quarter of double-digit growth.HD upgrades fulfillment with Ship from Best Location and routing to cut cancellations, raise satisfaction. The Home Depot Inc.’s (HD - Free Report) interconnected retail strategy appears to be delivering tangible results, even as the home improvement market remains challenged by elevated mortgage rates, housing affordability concerns and cautious consumer spending. The strategy centers on seamlessly connecting stores, digital platforms and supply-chain capabilities to create a frictionless shopping experience for DIY and professional customers.
At the heart of this approach is Home Depot’s effort to let customers shop whenever and however they choose. The company has invested heavily in fulfillment capabilities, delivery reliability, technology and digital tools that integrate online and in-store experiences. Initiatives such as "Ship from Best Location" leverage the company’s network of stores and distribution assets to improve delivery speed and inventory availability. The retailer is also refining order-routing logic to fulfill orders from the optimal location based on distance, inventory and delivery speed, helping reduce cancellations and improve customer satisfaction.
The benefits are increasingly visible in the company’s operating performance. In first-quarter fiscal 2026, Home Depot generated sales growth of 4.8% year-over-year, while comparable sales increased 0.6% despite a relatively unchanged demand environment. Online sales remained a bright spot, with digital sales rising more than 10% year over year, marking the fourth consecutive quarter of double-digit growth. Management attributed this momentum to ongoing investments in its interconnected platforms, enhanced search functionality, personalized recommendations and faster fulfillment options.
As Home Depot continues to remove friction across channels, and improve delivery and fulfillment capabilities, its interconnected retail strategy is helping drive customer engagement, market-share gains and long-term competitive differentiation.
How Are Peers Like LOW & WSM Catching Up?While Home Depot remains the industry leader in home improvement retail, competitors such as Lowe's Companies Inc. (LOW - Free Report) and Williams-Sonoma (WSM - Free Report) are making strategic investments in digital capabilities, omnichannel fulfillment and professional customer offerings to narrow the competitive gap and capture a greater share of consumer spending.
Lowe's investments in store modernization, digital capabilities and AI-powered tools appear to be paying off. In first-quarter fiscal 2026, online sales jumped 15.5% year over year, supported by enhancements in user experience, same-day delivery and its AI shopping assistant, Mylow, whose users convert at three times the rate of other customers. Store upgrades, improved fulfillment options and productivity tools also helped drive a 0.6% comparable-sales increase and market-share gains despite a challenging housing environment.
Williams-Sonoma's investments in stores, digital capabilities and AI-driven customer experiences are yielding strong results. In first-quarter fiscal 2026, e-commerce and retail comparable sales rose 4.8% and 4.7%, respectively, reflecting strength across channels. The company enhanced personalization, optimized shopping and checkout experiences, expanded AI tools, and improved product discovery, while store experiences and design services continued to attract customers. These initiatives helped drive a 4.8% companywide comps gain and continued market-share growth.
HD’s Price Performance, Valuation & EstimatesShares of Home Depot have lost 15.3% in the past six months versus the industry’s decline of 13.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, HD trades at a forward price-to-earnings ratio of 20.15X compared with the industry’s average of 19.02X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HD’s fiscal 2026 and fiscal 2027 earnings per share (EPS) implies year-over-year growth of 2.3% and 8.1%, respectively. The company’s EPS estimate for fiscal 2026 has moved down 0.3% in the past 30 days. Meanwhile, the consensus estimate for fiscal 2027 EPS has moved down by a penny in the past seven days.
Image Source: Zacks Investment Research
Home Depot stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Roughly 90% of the U.S. population lives within 10 miles of a Home Depot (HD +0.73%) location. A physical footprint like this with such a broad reach showcases the company's market leadership.
But investors haven't reaped the rewards. Home Depot shares have produced a disappointing total return of 12% in the past five years (as of June 1). On the other hand, the S&P 500 (^GSPC +0.50%) generated a much better total return of 94%.
With the retail stock trading 28% off its peak right now, investors might be interested in this opportunity. Take the time to learn these three things about Home Depot first, as this will inform your decision-making process.
Image source: The Motley Fool.
1. Demand has proven to be cyclical Unlike businesses that sell small-dollar items or that generate recurring subscription revenue, Home Depot has shown that its demand can be cyclical. During the pandemic, when households were flush with excess cash, revenue jumped 19.9% and 14.4% in fiscal 2020 and fiscal 2021, respectively. This is not a normal occurrence.
As the macro environment has evolved, now characterized by higher interest rates and stubborn inflationary pressures, Home Depot's growth has slowed notably. Revenue increased at an annualized pace of just 2.2% between fiscal 2021 and fiscal 2025. And in the first quarter of fiscal 2026 (ended May 1), same-store sales were up 0.6%.
The economic backdrop doesn't exactly give consumers the confidence they need to spend on expensive renovation projects and upgrades. During the Q1 2026 earnings call, CEO Ted Decker specifically called out low housing turnover and new construction starts trending down, which negatively impact the company.
On a positive note, however, Home Depot estimates its total addressable market to be $1.2 trillion. Based on its trailing-12-month revenue of $167 billion, there is plenty of room to steadily capture more market share over time.
2. Professionals are a key customer group Home Depot sells to DIY customers. It also targets professionals. This group includes contractors, plumbers, electricians, and roofers, for example, who tackle a high number of complex jobs. Sales to professionals grew at a faster pace than those to DIY customers during the latest fiscal quarter.
The company generates about half of its revenue from professionals. This translates to a significantly higher dollar figure than what smaller rival Lowe's gets from its 35% share of pro sales. Consequently, Home Depot has a massive lead in this segment.
Despite accounting for half of sales, professionals only make up 10% of Home Depot's customer base. These are extremely high-value shoppers that the business wants to continue catering to.
Home Depot offers them valuable products and services, such as complex order scheduling. "Pros can provide us with job site preferences and business hours, enabling us to complete their delivery on time, inside the exact window the pro is looking for," senior EVP Ann-Marie Campbell said on the Q1 2026 earnings call.
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3. Management is focused on capital returns Even though this is a cyclical operation, Home Depot continues to post consistent profits. In fiscal 2025, it brought in $14.2 billion in net income and $16.3 billion in operating cash flow. And remember, this is during an unfavorable macroeconomic environment.
Steady earnings support management's capital allocation policy, which prioritizes returning cash to shareholders. Home Depot engages in opportunistic share buybacks. In the past five years, the business reduced its diluted outstanding share count by 7.3%.
Dividends should command more attention, though. After the next payout on June 18, Home Depot will have paid a dividend in 157 straight quarters, an encouraging streak highlighting its financial strength. And in the past decade, the payout climbed 238%.
The S&P 500 pays a dividend yield of 1.03%. Home Depot's 3% dividend yield is almost 200% higher than that. This might encourage income investors to take a closer look at the retail stock.
Home Depot (HD - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this home-improvement retailer have returned -2.1% over the past month versus the Zacks S&P 500 composite's +1.9% change. The Zacks Retail - Home Furnishings industry, to which Home Depot belongs, has lost 2.3% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Home Depot is expected to post earnings of $4.71 per share for the current quarter, representing a year-over-year change of +0.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.4%.
The consensus earnings estimate of $15.02 for the current fiscal year indicates a year-over-year change of +2.3%. This estimate has changed -0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $16.21 indicates a change of +8% from what Home Depot is expected to report a year ago. Over the past month, the estimate has changed -0.8%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Home Depot.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Home Depot, the consensus sales estimate of $47.5 billion for the current quarter points to a year-over-year change of +4.9%. The $171.66 billion and $178.62 billion estimates for the current and next fiscal years indicate changes of +4.2% and +4.1%, respectively.
Last Reported Results and Surprise HistoryHome Depot reported revenues of $41.77 billion in the last reported quarter, representing a year-over-year change of +4.8%. EPS of $3.43 for the same period compares with $3.56 a year ago.
Compared to the Zacks Consensus Estimate of $41.49 billion, the reported revenues represent a surprise of +0.67%. The EPS surprise was +0.88%.
Over the last four quarters, Home Depot surpassed consensus EPS estimates two times. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Home Depot is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Home Depot. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
The stock market in 2026 has rebounded nicely from a challenging time following the launch of the Iran war in late February. Using the popular S&P 500 index, equities have gained 9% through June 7.
There's been a lot of attention paid to companies that make semiconductor chips because of their use in artificial intelligence (AI). And those stocks have soared, helping push the S&P 500 higher. In fact, the S&P 500 Information Technology sector appreciated by 18.4% this year.
While investors have flocked to those stocks, others have seen their prices dip this year. Home Depot's (HD +0.73%) share price has dropped 9%. But long-term investors should take notice and use this opportunity to buy shares.
Image source: Getty Images.
Short-term challenges Home Depot has long been a successful home-improvement retailer. The company's annual sales of nearly $165 billion in fiscal 2025 (ended Feb. 1) dwarfed those of its major competitor Lowe's, which produced roughly $86 billion.
As you'd expect, Home Depot's sales depend on certain economic factors, such as consumer confidence, the job market, and inflation. Persistently high inflation has forced consumers to spend more on everyday basics, meaning they have less to spend on major renovations.
Meanwhile, elevated interest rates have also affected large home improvement project undertakings. That's because people often borrow to undertake major renovations. Higher interest rates have also dampened buyer demand for houses, a key source of renovation demand since people typically renovate their new homes.
You can see the effect these factors have had on Home Depot's recent sales, which have been sluggish. Fiscal first-quarter same-store sales (comps) were flat after removing foreign-currency translations. Management cited homeowners delaying major renovations as the chief reason for the sales weakness.
However, interest rates will drop at some point, homes will become more affordable, and homeowners will undertake major projects, even if it's out of necessity. Of course, no one knows when that will happen. But when it does, Home Depot, with its attractive price points, wide range of offerings, and ubiquitous presence, remains in a prime position to benefit.
Buying Home Depot stock at a bargain These short-term concerns have hurt Home Depot's share price. They have underperformed the S&P 500 by about 19 percentage points so far in 2026.
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However, given that Home Depot remains in a strong competitive position, long-term investors should take notice of the better valuation. The stock's price-to-earnings (P/E) ratio has dropped from 24 to 22 this year. That also compares favorably to the stock's historical valuation. The shares have a 10-year median P/E ratio of 23.
Buying shares in a company merely because of a price drop is a risky gambit. However, in this case, it's an exciting opportunity to buy shares in a market-leading company whose stock price has dropped due to short-term economic factors.
That provides long-term investors with an excellent opportunity to buy shares during this time.
Monday's semiconductor rebound lasted exactly one trading session. The iShares Semiconductor ETF (SOXX +1.68%) was down by 8.6% at 12:44 p.m. ET, reflecting broad price drops in the chip sector. The same tech giants also weighed on the usual marketwide indexes. The Nasdaq Composite (^IXIC +0.31%) index was down 2.8% at the same point, ahead of a 1.6% drop for the S&P 500 (^GSPC +0.50%) and a 0.6% Dow Jones Industrial Average (^DJI +0.70%) retreat.
^IXIC data by YCharts
The session started promisingly enough. All three indexes (and the semiconductor ETF) opened higher and climbed until around 9:50 a.m. ET before the bottom fell out.
Apple's AI reveal and the chip stock reversal Apple (AAPL 1.52%) is a leading drag on all three indexes. The stock fell 3.8% after Apple unveiled an AI-oriented update of the Siri personal assistant app. Analysts liked the long-awaited AI announcement just fine, but many investors still sold the news. Notably, the company isn't leaning on well-known AI models such as Anthropic's Claude or OpenAI's ChatGPT. Instead, the company has developed a new high-performance AI model in partnership with Alphabet (GOOG +0.45%) (GOOGL +0.53%). It might be good, but nobody knows yet. As a result, Apple is on track for its worst day since February.
The chip sector has given back most of Monday's gains. Sector heavyweights like Nvidia (NVDA +0.15%), Broadcom (AVGO 0.85%), and Micron Technology (MU 1.02%) didn't do anything wrong today, but they're all down sharply anyway. It looks like yesterday's chip-stock surge lacked conviction.
Part of the jitters may stem from what's coming later this week. SpaceX is set to go public Friday in what's expected to be the largest IPO ever, with a $1.75 trillion valuation at the official starting price of $135 per share. And that's just the start of a giga-cap IPO spree. OpenAI filed confidentially for its own IPO late Monday, and Anthropic has reportedly done the same.
Image source: Getty Images.
Oil prices, meanwhile, are taking a breather from their recent surge. WTI crude dropped 3.9% to $87.74 per barrel after Energy Secretary Chris Wright said Strait of Hormuz traffic is "rising very meaningfully." President Trump is once again promising an Iran deal within days, though similar statements in recent weeks have not produced results. The United States Oil Fund (USO 2.64%) is down 3.3%.
And it's another relatively quiet day on the Dow. Apple's significant price drop only removed 70 points from the index, matched by a similar-sized point increase from Home Depot (HD +0.73%). A 3.7% Home Depot jump would never move the needle for the S&P 500, and the home improvement retailer isn't trading on the Nasdaq. But on the Dow, its $310 share price makes it roughly equal to trillion-dollar titans Apple and Amazon (AMZN 1.24%).
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Looking past the noise If you're feeling whiplash, you're not alone. The S&P 500 has now fallen in three of the past four sessions after its nine-week winning streak ended Friday. Monday's relief rally turned out to be a head fake.
Trading volumes are fairly low today, making it look like Wall Street wants a break from the recent volatility. But the SpaceX IPO is coming soon anyway, so you may want to buckle your seat belt for a while.
For long-term investors, the lesson is familiar: this week's drama makes for good headlines, but it won't determine where stocks are in five years. Check back tomorrow, or next month, depending on how you feel about market volatility headlines.
Anders Bylund has positions in Alphabet, Amazon, Micron Technology, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Broadcom, Home Depot, Micron Technology, Nvidia, and iShares Trust-iShares Semiconductor ETF. The Motley Fool recommends Nasdaq. The Motley Fool has a disclosure policy.
Donation to Boys & Girls Clubs of America will support soccer programming, workforce development and other initiatives serving youth across Southern California
, /PRNewswire/ -- As the U.S. Men's National Team begins its FIFA World Cup 26™ journey in Los Angeles, The Home Depot is marking the moment with a $250,000 donation to support Boys & Girls Clubs of America across the greater Los Angeles region.
The investment will support a range of initiatives serving local youth, including soccer programming, workforce development opportunities and other community-based Club programs across Southern California.
As a strategic partner of U.S. Soccer and supporter of the sport's continued growth in the United States, The Home Depot is helping create greater access and opportunity for the next generation of players, fans and communities connected to the game.
"With the world watching as the U.S. Men's National Team kicks off its World Cup journey in Los Angeles, we're proud to invest in the communities that make the game so meaningful," said Allison Kolber, Vice President of Integrated Marketing at The Home Depot. "This donation is about helping young people across greater Los Angeles access opportunities, build connections and be part of the excitement surrounding this historic moment for soccer in North America."
The initiative reflects The Home Depot's broader commitment to supporting communities connected to the tournament and celebrating the impact soccer can have both on and off the field.
"We are proud to work with great partners like The Home Depot, who share our belief that everyone, everywhere should feel like they belong in soccer. By growing the game, expanding access and harnessing soccer as a force for good, we can ensure the legacy of this historic moment reaches communities across greater Los Angeles and inspires the next generation for years to come," said Lex Chalat, Executive Director of Soccer Forward Foundation, U.S. Soccer's social impact arm.
"As excitement builds around the game, this investment will help more young people benefit from sports in their communities," said Chad Hartman, National Vice President of Corporate Partnerships & Engagement at Boys & Girls Clubs of America. "We're proud to work with The Home Depot to expand access to soccer, while supporting workforce readiness and youth development efforts that help young people build confidence, develop life skills and reach their full potential."
Content tied to the donation and community initiative will roll out across owned and social channels throughout the tournament, with additional programming planned this summer.
ABOUT THE HOME DEPOT
The Home Depot is the world's largest home improvement specialty retailer. At the end of the first quarter of fiscal 2026, the company operated a total of 2,361 retail stores and over 1,280 SRS locations across all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The Company employs over 470,000 associates. The Home Depot's stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the Dow Jones industrial average and Standard & Poor's 500 index.
ABOUT BOYS & GIRLS CLUBS OF AMERICA
For more than 160 years, Boys & Girls Clubs of America (BGCA.org) has provided a safe place for kids and teens to learn and grow. Clubs offer caring adult mentors, fun and friendship, and high-impact youth development programs on a daily basis during critical non-school hours. Boys & Girls Clubs programming promotes academic success, good character and leadership, and healthy lifestyles. Over 5,500 Clubs serve more than 4 million young people through Club membership and community outreach. Clubs are located in cities, towns, public housing and on Native lands throughout the country, and serve military families in BGCA-affiliated Youth Centers on U.S. military installations worldwide. The national headquarters is located in Atlanta. Learn more about Boys & Girls Clubs of America on Facebook and LinkedIn.
ABOUT U.S. SOCCER
Founded in 1913, U.S. Soccer, a 501(c)(3) nonprofit, is the official governing body of the sport in the United States. Our vision is clear; we exist in service to soccer. Our ambition is to ignite a national passion for the game and elevate its power to unite, inspire, and uplift. We believe soccer is more than a sport; it is a force for good. We are focused on three areas: U.S. Soccer Everywhere, making soccer the #1 played sport in every community in America; U.S. Soccer is Yours, ensuring everyone feels ownership of soccer's future in the U.S., and U.S. Soccer Success, winning major tournaments, including World Cups. Together, the future of the game is ours to build. For more information, visit ussoccer.com/ourvision.
ABOUT SOCCER FORWARD
The Soccer Forward Foundation is a key driver in U.S. Soccer's overall vision that soccer is a force for good. Operating with the belief that soccer contributes to healthier and more connected, equitable communities, Soccer Forward supports U.S. Soccer's efforts to expand access to the sport, helping the game reach more people and create lasting change. Soccer Forward focuses on enabling and equipping people, places and programs to grow the game in communities across America and on delivering cutting-edge research, training, and guidelines to prove soccer's contribution to health outcomes in communities. In addition, it will develop standards and provide business and technical support to build the ecosystem for the women's game across the U.S. and globally. For more information, visit ussoccer.com/soccer-forward.
