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BIP Wealth LLC trimmed its stake in shares of The Home Depot, Inc. (NYSE:HD – Free Report) by 17.5% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 20,957 shares of the home improvement retailer’s stock after selling 4,440 shares during the quarter. BIP Wealth LLC’s holdings in Home Depot were worth $5,962,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors also recently made changes to their positions in HD. BlackRock Inc. acquired a new position in shares of Home Depot in the 2nd quarter valued at about $28,771,247,000. Bank of America Corp DE acquired a new stake in Home Depot during the second quarter worth approximately $5,780,468,000. Bank of New York Mellon Corp acquired a new position in shares of Home Depot during the 2nd quarter valued at $2,777,396,000. Corient Private Wealth LP acquired a new position in shares of Home Depot during the second quarter valued at about $390,913,000. Finally, Legal & General Group Plc acquired a new position in shares of Home Depot during the second quarter valued at about $1,953,883,000. 70.86% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling In related news, EVP Michael Rowe sold 710 shares of the business’s stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $336.76, for a total transaction of $239,099.60. Following the transaction, the executive vice president owned 6,838 shares in the company, valued at $2,302,764.88. The trade was a 9.41% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Teresa Roseborough sold 2,455 shares of Home Depot stock in a transaction on Friday, August 28th. The shares were sold at an average price of $328.77, for a total value of $807,130.35. Following the transaction, the executive vice president owned 14,061 shares of the company’s stock, valued at $4,622,834.97. The trade was a 14.86% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 9,829 shares of company stock worth $3,339,314 in the last ninety days. Corporate insiders own 0.08% of the company’s stock.

Wall Street Analysts Forecast Growth Several brokerages have recently commented on HD. Weiss Ratings restated a “hold (c)” rating on shares of Home Depot in a research note on Friday, October 2nd. Wells Fargo & Company increased their price objective on shares of Home Depot from $360.00 to $400.00 and gave the company an “overweight” rating in a research note on Tuesday, August 11th. Guggenheim reaffirmed a “buy” rating and issued a $425.00 price target on shares of Home Depot in a report on Wednesday, August 19th. KeyCorp reissued a “sector weight” rating on shares of Home Depot in a research report on Wednesday, August 19th. Finally, Royal Bank Of Canada cut their price objective on shares of Home Depot from $343.00 to $342.00 and set a “sector perform” rating for the company in a report on Wednesday, August 19th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $375.93. Read Our Latest Analysis on HD

Home Depot Stock Performance Shares of HD opened at $319.73 on Friday. The company has a market cap of $318.99 billion, a PE ratio of 22.37, a price-to-earnings-growth ratio of 2.33 and a beta of 1.00. The company has a current ratio of 1.08, a quick ratio of 0.31 and a debt-to-equity ratio of 2.64. The stock has a 50-day moving average price of $309.69 and a 200-day moving average price of $323.89. The Home Depot, Inc. has a 12-month low of $277.15 and a 12-month high of $397.63.

Home Depot (NYSE:HD – Get Free Report) last announced its earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.73 by $0.19. The company had revenue of $47.86 billion during the quarter, compared to analyst estimates of $47.24 billion. Home Depot had a net margin of 8.41% and a return on equity of 106.42%. The firm’s quarterly revenue was up 5.7% compared to the same quarter last year. During the same period in the previous year, the business earned $4.68 earnings per share. 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 earnings per share for the current fiscal year.

Home Depot Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 17th. Stockholders of record on Thursday, September 3rd were paid a $2.33 dividend. The ex-dividend date of this dividend was Thursday, September 3rd. This represents a $9.32 dividend on an annualized basis and a dividend yield of 2.9%. Home Depot’s dividend payout ratio is 65.22%.

Key Headlines Impacting Home Depot Here are the key news stories impacting Home Depot this week:

Positive Sentiment: Home Depot is developing the “Orange Exchange,” a supplier initiative intended to connect the retailer with more small businesses. The effort could improve product quality, assortment and availability while supporting long-term customer demand. Home Depot’s latest move is good for customers and the U.S. economy Positive Sentiment: Recent coverage highlights potential support from lower interest rates, which could gradually stimulate home sales, remodeling activity and larger renovation projects. Home Depot stock rebounds as rate cuts stir home-improvement demand Positive Sentiment: Analyst earnings and revenue estimate revisions, along with the company’s growing distribution capabilities, have renewed attention on Home Depot’s valuation. The latest quarterly results also exceeded consensus expectations, with earnings of $4.92 per share and revenue of $47.86 billion. Positive Sentiment: Several major institutional investors increased their Home Depot holdings during the latest reported quarter, while the median analyst price target cited by Quiver Quantitative is $375, implying potential upside from recent trading levels. Neutral Sentiment: The Home Depot Foundation pledged $1 billion through 2032 for veteran housing and related causes. The announcement strengthens the company’s social-impact profile but is unlikely to materially affect near-term earnings. The Home Depot Foundation Pledges $1 Billion to Veteran Causes by 2032 Negative Sentiment: Risk-off trading, higher oil prices and persistently elevated mortgage rates are weighing on housing activity and economically sensitive retailers. Soft home sales and affordability concerns could delay big-ticket renovation demand. Negative Sentiment: Reported insider activity showed four sales and no purchases over the past six months, a potentially cautious signal, although the transactions do not necessarily indicate a change in the company’s fundamentals. Home Depot Company Profile (Free Report)

The Home Depot, Inc is a home improvement retailer serving do-it-yourself customers, professional contractors, and other building and maintenance professionals. The company sells a broad selection of building materials, hardware, tools, appliances, paint, plumbing and electrical supplies, flooring, lighting, lawn and garden products, and home décor.

In addition to merchandise, Home Depot offers services such as product delivery, tool and equipment rental, credit services, and installation for selected products.

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AI stocks cracked on Thursday and spooked investors sent billions pouring into Treasuries, but the bond rally now faces a Fed meeting, a fresh inflation report, and December rate hike odds that could erase every gain.

The 10-year Treasury yield fell 19.3 basis points to 4.953% on Thursday, October 22, 2026. Measured before the final close, it was on track for its largest daily drop since March 10, 2023. A basis point is one hundredth of a percentage point.

The buying came from investors leaving AI stocks. Meta Platforms (NASDAQ:META | META Price Prediction) fell 7% after its results because its plan to issue non-voting stock to fund AI revived concerns about its capital commitments.

The Philadelphia semiconductor index dropped 6.7%, its biggest decline since June 23. The Nasdaq Composite lost 2.6% to 26,008.86, its biggest one-day percentage drop since early June. The S&P 500 fell about 1.2% to 7,663.43, while the Dow edged up 11.89 points to 52,867.98.

Invesco QQQ Trust (NASDAQ:QQQ) fell 2.86% to $704.47, and iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) gained 1.87% to $81.74. Fear drove that bond rally, and the Federal Reserve is still raising rates.

Safety Demand Outweighed Strong Economic Data
Treasury’s official par yield curve shows the 10-year closing at 4.96%, down from 5.13% on October 21. It was the first close below 5% since September 22, and on that occasion the yield jumped to 5.11% the next day.

In market trading, the yield had topped out at 5.3645% on October 7, its highest since April 2002. The two-year fell 18.5 basis points to 4.638%, its biggest drop since August 2025, and the 30-year fell 15 basis points to 5.287%.

Jobless claims fell by 6,000 to 194,000, and inflation stayed persistent. Both figures normally push yields up. “They are rotating out of techs, out of the AIs, and into the more safety trades,” said Joe Saluzzi, co-head of equity trading at Themis Trading.

Thomas Urano, co-chief investment officer of Sage Advisory, said: “The flight-to-quality trade is winning in the Treasury space.” A rally that runs against the data can reverse quickly once the fear passes.

December Hike Odds Still Threaten Long Bonds
CME FedWatch odds of a hike of at least 25 basis points at the October 27 and 28 meeting fell to 7.2%, from 27.7% a week earlier and 55.4% a month earlier. Odds of a December hike slipped from around 86% at noon Thursday to about 78% later in the day.

TLT holds Treasuries maturing in 20 years or more, and long bonds lose more of their price than short ones when yields rise. That sensitivity is why the fund is down 7.08% over the year ended October 22.

Mortgage Rates Barely Moved Despite the Bond Rally
Freddie Mac’s 30-year average fell to 7.32% from 7.40%, the level it held on October 8 and October 15. It was the first weekly decline since at least early September, and the rate was 6.71% on September 3 and 6.19% a year earlier.

The 15-year average slid to 6.68% from 6.71%. Mortgage rates follow the 10-year with a delay and a spread, so yields need to stay lower for weeks before home buyers see real relief.

iShares U.S. Home Construction ETF (BATS:ITB) jumped 5.39% to $91.24, and Home Depot (NYSE:HD) rose 4.33% to $327.73. Those gains are large for a market where mortgage rates stay above 7%, and existing home sales ran at an annualized 3.99 million in September.

Why TLT’s Rally Faces a December Test
TLT’s gain assumes Fed help that hasn’t come, and December hike odds near 78% leave room for long yields to rise again. If AI fears ease, money that left QQQ can go back into tech, and the demand for safety that raised Treasuries would fade.

Home Depot offers a different risk profile. It pays a 2.80% dividend yield, grew comparable sales 1.7% in its fiscal second quarter as customers took on smaller projects, and kept its fiscal 2026 guidance despite housing affordability pressure.

The real test comes when the FOMC meets on October 27 and 28, and PCE inflation data arrives on October 29. If the 10-year closes back above 5.13% on Treasury’s par curve, the whole fear rally will have reversed.

Contact [email protected] for any questions or corrections.

Expanded commitment will develop and grow innovative housing solutions 
to help end veteran homelessness

Key Facts:

$1 Billion: The Home Depot Foundation's total commitment to veteran causes through 2032. $650+ Million: Invested since 2011, building and improving more than 70,000 veteran homes and facilities. Innovative Solutions: Testing and scaling new housing models to address homelessness and housing insecurity among veterans. Hands-On Support: Completing hundreds of veteran service projects across all 50 states and three U.S. territories during Team Depot's annual Celebration of Service. , /PRNewswire/ -- Building on 15 years of impact since 2011, today The Home Depot Foundation is increasing its total commitment to veteran causes to $1 billion by 2032. Across America, nearly 33,000 veterans experience homelessness on any given night, and over 2.75 million live in inadequate housing. To address this crisis, the Foundation's expanded commitment will tackle both immediate and long-term veteran housing challenges, including veteran homelessness, through scalable, innovative solutions.  

"We believe every veteran deserves a safe place to call home," said Erin Izen, executive director of The Home Depot Foundation. "Our $1 billion commitment supports the partnerships and solutions needed to help more veterans move from uncertainty to long-term stability."

15 Years of Impact
Since 2011, The Home Depot Foundation has invested more than $650 million in veteran causes, improved more than 70,000 veteran homes and facilities, and contributed to a more than 50% reduction in veteran homelessness over the last 15 years.  

During this time, the Foundation has expanded access to transitional and permanent supportive housing facilities with partners like VOA, completed critical home repairs and accessibility modifications alongside organizations like Habitat for Humanity and Semper Fi & America's Fund, and partnered with Gary Sinise Foundation, Tunnel to Towers and Jared Allen Homes for Wounded Warriors to build and modify smart homes for catastrophically wounded veterans.

Strategic Grants to Tackle Veteran Housing Challenges
Through its latest round of partner investments, the Foundation will also test and scale new approaches for long-term impact, such as:

Collaborating Across Partners: With the National Housing Conference, the Foundation today convened a national summit of nonprofit partners and industry leaders to discuss the systemic causes of veteran housing insecurity and identify solutions. Removing Barriers to Housing Access: The Landlords, Organizations, and Veterans Engagement (LOVE) Fund with Open Doors Atlanta and the U.S.VETS Master Lease Program will accelerate veteran housing placements by removing rental barriers, such as security deposits and application fees, or by leasing units directly from property owners. Homelessness Prevention and Permanent Housing: The latest grants help provide housing stabilization resources, including repairs to transitional housing facilities, and renovations for permanent supportive housing for formerly homeless veterans, through partners like Operation Homefront and Community Solutions. Alternative Housing Models: Additional funding will support alternative solutions, such as Purple Heart Homes' modular home builds for senior and housing insecure veterans. "Master leasing is an innovative solution that helps veterans overcome one of the biggest obstacles to housing stability: access to affordable homes in highly competitive rental markets," said Darryl Vincent, president and CEO, U.S.VETS. "The Home Depot Foundation provides the support to test and refine new models like this in cities across the country, so more veterans have the stability they need to rebuild their lives and move forward with confidence."

National Mobilization: Helping Heroes at Home
The investment announcement coincides with the Foundation's annual Celebration of Service initiative. This fall, Team Depot – The Home Depot's associate volunteer force – will complete hundreds of projects supporting veterans across all 50 states and three U.S. territories.

A recent public build on the National Mall in Washington, D.C., highlighted these efforts. In honor of America's 250th birthday, The Home Depot Foundation and Team Depot partnered with Purple Heart Homes to construct a fully accessible modular home on the Mall for James "Jim" Taylor, a U.S. Marine Corps veteran who overcame homelessness. After construction, the house was transported to Virginia, where a formal dedication will occur later this year for the proud new homeowner.

To learn more about the Foundation's impact and follow this year's Celebration of Service projects, visit HomeDepotFoundation.org and follow #TeamDepot on social media.

About The Home Depot Foundation
The Home Depot Foundation, a nonprofit supported by The Home Depot (NYSE: HD), works to improve the homes and lives of U.S. veterans, support communities impacted by natural disasters and train skilled tradespeople to fill the labor gap. Since 2011, the Foundation has invested more than $650 million in veteran causes and improved more than 70,000 veteran homes and facilities. The Foundation has pledged to invest $1 billion in veteran causes, and, alongside The Home Depot, create 15 million opportunities to explore skilled trades careers through the Path to Pro program by 2032. To date, the Foundation has surpassed $1 billion in total charitable giving. To learn more about The Home Depot Foundation visit HomeDepotFoundation.org and follow us on LinkedIn, on Twitter @HomeDepotFound, and on Facebook and Instagram @HomeDepotFoundation.

SOURCE The Home Depot Foundation

Atticus Wealth Management LLC purchased a new position in The Home Depot, Inc. (NYSE:HD – Free Report) during the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm purchased 4,789 shares of the home improvement retailer’s stock, valued at approximately $1,363,000.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new position in shares of Home Depot during the second quarter worth approximately $28,771,247,000. State Street Corp raised its stake in shares of Home Depot by 1.1% during the second quarter. State Street Corp now owns 47,175,026 shares of the home improvement retailer’s stock valued at $16,637,688,000 after acquiring an additional 499,168 shares in the last quarter. Bank of America Corp DE bought a new stake in shares of Home Depot during the second quarter valued at approximately $5,780,468,000. Bank of New York Mellon Corp purchased a new stake in shares of Home Depot in the second quarter valued at approximately $2,777,396,000. Finally, Amundi boosted its holdings in shares of Home Depot by 26.4% in the second quarter. Amundi now owns 7,339,614 shares of the home improvement retailer’s stock valued at $2,588,535,000 after purchasing an additional 1,533,276 shares during the period. Institutional investors own 70.86% of the company’s stock.

Insider Activity In related news, EVP Teresa Roseborough sold 2,455 shares of the stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $328.77, for a total transaction of $807,130.35. Following the completion of the sale, the executive vice president owned 14,061 shares of the company’s stock, valued at $4,622,834.97. This represents a 14.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Michael F. Rowe sold 710 shares of the firm’s stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $336.76, for a total transaction of $239,099.60. Following the completion of the sale, the executive vice president owned 6,838 shares of the company’s stock, valued at approximately $2,302,764.88. This trade represents a 9.41% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 9,829 shares of company stock worth $3,339,314 in the last quarter. 0.08% of the stock is currently owned by corporate insiders.

Trending Headlines about Home Depot Here are the key news stories impacting Home Depot this week: Positive Sentiment: Home Depot crossed above a historically bullish trendline. Similar technical breakouts have historically preceded significant gains, while the stock had recently posted a six-session advance and remains near the $320 level. Blue-Chip Stock Just Crossed Over Historically Bullish Trendline Positive Sentiment: The stock previously outperformed the broader market, supported by investor interest in Home Depot’s professional-contractor strategy, acquisitions, and logistics network. Why Home Depot Outpaced the Stock Market Today Neutral Sentiment: Home Depot is becoming a larger distributor, combining 2,364 retail stores with more than 1,340 distribution locations. The broader network could capture more contractor spending, but its margins, capital needs, and returns may differ from the traditional retail model. Home Depot: Does Becoming a Bigger Distributor Change How the Stock Should Be Valued? Neutral Sentiment: Home Depot remains a widely watched and trending stock, although investor attention alone does not change the company’s fundamentals. Key factors include housing activity, renovation demand, earnings growth, and execution of its contractor-focused strategy. What to Know Beyond Why Home Depot Is a Trending Stock Negative Sentiment: The company is caught between a sluggish housing market and restrained large renovation projects. Weak housing turnover and affordability pressures could delay demand recovery, making investors cautious about paying a premium for Home Depot’s larger platform. Home Depot Stuck Between Two Fundamental Issues Home Depot Trading Down 0.4% Shares of NYSE:HD opened at $313.82 on Thursday. The company has a market capitalization of $313.10 billion, a PE ratio of 21.28, a P/E/G ratio of 2.24 and a beta of 1.00. The company has a current ratio of 1.08, a quick ratio of 0.31 and a debt-to-equity ratio of 2.64. The Home Depot, Inc. has a 12-month low of $277.15 and a 12-month high of $397.63. The business’s fifty day simple moving average is $310.33 and its 200-day simple moving average is $323.87.

Home Depot (NYSE:HD – Get Free Report) last issued its quarterly earnings data on Tuesday, August 18th. The home improvement retailer reported $4.92 earnings per share for the quarter, topping analysts’ consensus estimates of $4.73 by $0.19. Home Depot had a return on equity of 106.42% and a net margin of 8.41%. The firm had revenue of $47.86 billion during the quarter, compared to analysts’ expectations of $47.24 billion. During the same period in the prior year, the business posted $4.68 EPS. The firm’s quarterly revenue was up 5.7% on a year-over-year basis. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. As a group, equities research analysts predict that The Home Depot, Inc. will post 15.01 earnings per share for the current fiscal year.

Home Depot Dividend Announcement The company also recently declared a quarterly dividend, which was paid on Thursday, September 17th. Stockholders of record on Thursday, September 3rd were issued a $2.33 dividend. This represents a $9.32 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date was Thursday, September 3rd. Home Depot’s dividend payout ratio (DPR) is currently 65.22%.

Wall Street Analyst Weigh In Several research analysts have commented on HD shares. Sanford C. Bernstein reduced their price objective on Home Depot from $354.00 to $344.00 and set a “market perform” rating on the stock in a report on Wednesday, September 9th. Guggenheim reissued a “buy” rating and set a $425.00 price target on shares of Home Depot in a research report on Wednesday, August 19th. Truist Financial increased their price target on Home Depot from $369.00 to $373.00 and gave the stock a “buy” rating in a research report on Wednesday, August 19th. KeyCorp restated a “sector weight” rating on shares of Home Depot in a research note on Wednesday, August 19th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Home Depot in a report on Friday, October 2nd. One research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Home Depot presently has a consensus rating of “Moderate Buy” and an average target price of $375.93.

Get Our Latest Report on HD

Home Depot Company Profile (Free Report)

The Home Depot, Inc is a home improvement retailer serving do-it-yourself customers, professional contractors, and other building and maintenance professionals. The company sells a broad selection of building materials, hardware, tools, appliances, paint, plumbing and electrical supplies, flooring, lighting, lawn and garden products, and home décor.

In addition to merchandise, Home Depot offers services such as product delivery, tool and equipment rental, credit services, and installation for selected products.

Further Reading Five stocks we like better than Home Depot GM Beat and Added a $20 Billion Buyback—Why Did the Stock Fall? Intercepting Growth: Karman Secures $218M Lockheed Martin Deal Tech Stocks Took a Hit—These 2 Pharma Stocks Are Near New Highs Chip Stocks Have Pulled Back—Here’s How 3 Semiconductor ETFs Stack Up for Investors

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Axxcess Wealth Management LLC lowered its stake in The Home Depot, Inc. (NYSE:HD – Free Report) by 65.7% during the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 17,327 shares of the home improvement retailer’s stock after selling 33,251 shares during the quarter. Axxcess Wealth Management LLC’s holdings in Home Depot were worth $4,929,000 at the end of the most recent reporting period.

Other large investors also recently made changes to their positions in the company. BlackRock Inc. acquired a new stake in shares of Home Depot during the second quarter worth $28,771,247,000. Bank of America Corp DE acquired a new position in Home Depot in the second quarter valued at about $5,780,468,000. Bank of New York Mellon Corp acquired a new position in Home Depot in the second quarter valued at about $2,777,396,000. Corient Private Wealth LP acquired a new position in Home Depot in the second quarter valued at about $390,913,000. Finally, Legal & General Group Plc bought a new position in Home Depot during the second quarter worth about $1,953,883,000. Institutional investors and hedge funds own 70.86% of the company’s stock.

Trending Headlines about Home Depot Here are the key news stories impacting Home Depot this week:

Positive Sentiment: Home Depot crossed above a historically bullish trendline. Similar technical breakouts have historically preceded significant gains, while the stock had recently posted a six-session advance and remains near the $320 level. Blue-Chip Stock Just Crossed Over Historically Bullish Trendline Positive Sentiment: The stock previously outperformed the broader market, supported by investor interest in Home Depot’s professional-contractor strategy, acquisitions, and logistics network. Why Home Depot Outpaced the Stock Market Today Neutral Sentiment: Home Depot is becoming a larger distributor, combining 2,364 retail stores with more than 1,340 distribution locations. The broader network could capture more contractor spending, but its margins, capital needs, and returns may differ from the traditional retail model. Home Depot: Does Becoming a Bigger Distributor Change How the Stock Should Be Valued? Neutral Sentiment: Home Depot remains a widely watched and trending stock, although investor attention alone does not change the company’s fundamentals. Key factors include housing activity, renovation demand, earnings growth, and execution of its contractor-focused strategy. What to Know Beyond Why Home Depot Is a Trending Stock Negative Sentiment: The company is caught between a sluggish housing market and restrained large renovation projects. Weak housing turnover and affordability pressures could delay demand recovery, making investors cautious about paying a premium for Home Depot’s larger platform. Home Depot Stuck Between Two Fundamental Issues Home Depot Stock Down 0.4% NYSE:HD opened at $313.82 on Thursday. The Home Depot, Inc. has a 1 year low of $277.15 and a 1 year high of $397.63. The company has a current ratio of 1.08, a quick ratio of 0.31 and a debt-to-equity ratio of 2.64. The stock has a market cap of $313.10 billion, a price-to-earnings ratio of 21.96, a PEG ratio of 2.24 and a beta of 1.00. The stock has a 50-day moving average price of $310.33 and a two-hundred day moving average price of $323.87. Home Depot (NYSE:HD – Get Free Report) last announced its quarterly earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.73 by $0.19. The company had revenue of $47.86 billion during the quarter, compared to the consensus estimate of $47.24 billion. Home Depot had a return on equity of 106.42% and a net margin of 8.41%. The company’s revenue for the quarter was up 5.7% compared to the same quarter last year. During the same period in the prior year, the company earned $4.68 earnings per share. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. As a group, equities analysts expect 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, September 17th. Investors of record on Thursday, September 3rd were given a $2.33 dividend. The ex-dividend date was Thursday, September 3rd. This represents a $9.32 annualized dividend and a dividend yield of 3.0%. Home Depot’s payout ratio is currently 65.22%.

Insiders Place Their Bets In other Home Depot news, CAO Kimberly R. Scardino sold 675 shares of Home Depot stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $305.95, for a total value of $206,516.25. Following the transaction, the chief accounting officer owned 8,189 shares of the company’s stock, valued at approximately $2,505,424.55. The trade was a 7.62% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Michael F. Rowe sold 710 shares of Home Depot stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $336.76, for a total transaction of $239,099.60. Following the completion of the transaction, the executive vice president directly owned 6,838 shares in the company, valued at approximately $2,302,764.88. The trade was a 9.41% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 9,829 shares of company stock valued at $3,339,314 in the last quarter. 0.08% of the stock is owned by company insiders.

Wall Street Analyst Weigh In HD has been the subject of several analyst reports. Weiss Ratings restated a “hold (c)” rating on shares of Home Depot in a research report on Friday, October 2nd. Truist Financial upped their price target on Home Depot from $369.00 to $373.00 and gave the company a “buy” rating in a research note on Wednesday, August 19th. Mizuho increased their price target on shares of Home Depot from $385.00 to $390.00 and gave the company an “outperform” rating in a research report on Wednesday, August 19th. Jefferies Financial Group reissued a “buy” rating and set a $398.00 price objective on shares of Home Depot in a research note on Tuesday, August 18th. Finally, Royal Bank Of Canada reduced their price objective on shares of Home Depot from $343.00 to $342.00 and set a “sector perform” rating on the stock in a research note on Wednesday, August 19th. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $375.93.

Get Our Latest Report on Home Depot

Home Depot Company Profile (Free Report)

The Home Depot, Inc is a home improvement retailer serving do-it-yourself customers, professional contractors, and other building and maintenance professionals. The company sells a broad selection of building materials, hardware, tools, appliances, paint, plumbing and electrical supplies, flooring, lighting, lawn and garden products, and home décor.

In addition to merchandise, Home Depot offers services such as product delivery, tool and equipment rental, credit services, and installation for selected products.

Featured Articles Five stocks we like better than Home Depot GM Beat and Added a $20 Billion Buyback—Why Did the Stock Fall? Intercepting Growth: Karman Secures $218M Lockheed Martin Deal Tech Stocks Took a Hit—These 2 Pharma Stocks Are Near New Highs Chip Stocks Have Pulled Back—Here’s How 3 Semiconductor ETFs Stack Up for Investors

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Home Depot (HD - Free Report) closed at $315.06 in the latest trading session, marking a +1.67% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.28%. On the other hand, the Dow registered a gain of 1.02%, and the technology-centric Nasdaq decreased by 0.02%.

Shares of the home-improvement retailer have appreciated by 4.27% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 4.46%, and outperforming the S&P 500's gain of 0.67%.

Investors will be eagerly watching for the performance of Home Depot in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 17, 2026. It is anticipated that the company will report an EPS of $3.86, marking a 3.21% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $42.72 billion, up 3.3% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $15.02 per share and revenue of $171.44 billion, indicating changes of +2.25% and +4.1%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Home Depot. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% higher. At present, Home Depot boasts a Zacks Rank of #3 (Hold).

Digging into valuation, Home Depot currently has a Forward P/E ratio of 20.64. This expresses a premium compared to the average Forward P/E of 17.04 of its industry.

Also, we should mention that HD has a PEG ratio of 2.2. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Retail - Home Furnishings stocks are, on average, holding a PEG ratio of 1.53 based on yesterday's closing prices.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 79, placing it within the top 33% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

Home Depot (HD +0.08%) stock has been struggling this year, falling by 10% thus far in 2026. Investors are concerned about its future growth, as consumers are spending less due to inflation and are more cautious in taking on home renovation projects, which the retailer thrives on.

The retail stock, however, is trading at a reduced valuation, and expectations may be low heading into its upcoming earnings release, for the third quarter, which is scheduled for Nov. 17. Here's why buying the stock before those numbers come out could be a good move for investors.

Image source: Getty Images.

There have been signs of improvement for the businessHome Depot's growth rate hasn't been strong in recent years, and there have been multiple quarters where its top line declined on a year-over-year basis. The good news, however, is that in its most recent quarter, the growth rate was back up to just under 6%.

HD Revenue (Quarterly YoY Growth) data by YCharts

With home repair projects and maintenance, those items can often only be delayed for so long before consumers feel little choice but to take them on. It's that long-term necessity of these types of expenditures that makes it highly likely that Home Depot's business will recover from any downturn in its growth. The company is, after all, a trusted brand that people turn to for not only tools and equipment but also home repair and renovation advice.

The stock's low valuation makes now an excellent time to buyI'm not going to try to predict that this coming earnings report will feature another strong quarter from Home Depot. It may end up seeing a slowdown in its growth rate compared to last quarter. But I do know that with this being a quality business, and its stock trading at a reasonable valuation of 21 times its trailing earnings (which is lower than the S&P 500 average of 23), now can be an opportune time to buy it.

$309.88+$0.25 (+0.08%)

NYSE · As of 4:00 PM ET 10/19/26

Maybe Home Depot does better than expected in Q3, maybe not. But it's the long game that matters. And with Home Depot being an excellent retailer with a solid brand, for long-term investors, buying it when it's trading at a reasonable valuation can set them up for terrific long-term returns. The stock's 3% yield only sweetens the deal for investors, as does the fact that the company has paid a dividend for 158 consecutive quarters and been a reliable income stock for investors to rely on for many years.

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Breaking Down the Zacks Focus ListBuilding an investment portfolio from scratch can be difficult, so if you could, wouldn't you take a peek at a curated list of top stocks?

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Focus List Spotlight: Home Depot (HD - Free Report) Based on net sales, The Home Depot Inc. is the world’s largest home improvement specialty retailer. At the end of second-quarter fiscal 2026, the company operated 2,364 retail stores and more than 1,340 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 offers a broad assortment of building materials, home improvement products, lawn and garden items, décor products and installation services. It supports customers through stores, digital platforms and a large distribution and fulfillment network designed to serve both consumers and professional contractors.

On October 15, 2015, HD was added to the Focus List at $120.27 per share. Shares have increased 157.45% to $309.63 since then, and the company is a #3 (Hold) on the Zacks Rank.

For fiscal 2027, 10 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $15.02. HD boasts an average earnings surprise of 2.9%.

Moreover, analysts are expecting HD's earnings to grow 2.3% for the current fiscal year.

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Deciding between Home Depot (HD +0.89%) and Walmart (WMT +0.79%) comes down to weighing a possible pickup in housing-related spending against Walmart's steadier growth in everyday essentials.

While both companies serve as anchors for American consumers, they operate at opposite ends of the retail spectrum. Home Depot focuses on projects for homeowners and professionals, and Walmart sells a broad range of essentials and discretionary goods in 19 countries.

The case for Home DepotHome Depot serves two customer groups, do-it-yourself (DIY) homeowners and professionals (Pros) such as remodelers and general contractors. The company operated 2,359 stores at the end of fiscal 2025, according to its annual report. It has also expanded into specialty distribution.

Home Depot acquired SRS, a specialty trade distribution company, in fiscal 2024, and SRS completed the acquisition of GMS, a distributor of drywall and other construction products, in fiscal 2025. Home Depot says SRS had more than 1,340 locations at the end of the second quarter of fiscal 2026.

In the fiscal year ended Feb. 1, 2026, revenue reached approximately $164.7 billion, a 3.2% increase from the prior fiscal year that included an extra week worth about $2.5 billion in sales.

Reported net income for the same period was nearly $14.2 billion, down about 4.4% from the roughly $14.8 billion earned in the previous year. Adjusted diluted earnings per share fell about 3.6% to $14.69 from $15.24, according to the company's release.

As of its Feb. 1, 2026, balance sheet, the debt-to-equity ratio reached nearly 5.1x, counting both borrowings and lease obligations against shareholder equity. That indicates the company uses significant leverage. By the end of the second quarter on Aug. 2, 2026, the same ratio had eased to about 3.8x as equity rose and total debt fell by nearly $3 billion.

The current ratio, a measure of assets available to cover short-term obligations, was approximately 1.1x at fiscal year-end. For fiscal 2025, the company generated nearly $12.6 billion in free cash flow, defined as operating cash flow minus capital expenditures.

In the second quarter of fiscal 2026, which ended Aug. 2, 2026, sales rose 5.7% to $47.9 billion and comparable sales rose 1.7%, according to the company's Aug. 18 earnings release.

Home Depot reaffirmed its fiscal 2026 guidance, which calls for total sales growth of approximately 2.5% to 4.5% and comparable sales growth of approximately flat to 2%. It expects diluted earnings per share to grow approximately flat to 4% from $14.23 in fiscal 2025.

The case for WalmartWalmart serves approximately 280 million customers each week through its stores and its eCommerce websites and mobile apps, according to its fiscal 2026 annual report. The business has three reportable segments. Walmart U.S. and Walmart International are joined by Sam's Club U.S., which operates membership warehouse clubs.

The annual report describes its Everyday Low Price philosophy as pricing items "at a low price every day" so customers can trust that prices won't change under frequent promotional activity.

In the fiscal year ended Jan. 31, 2026, revenue reached nearly $713.2 billion, a growth of approximately 4.7% over the prior year. Net income attributable to Walmart rose to roughly $21.9 billion from $19.4 billion, for a net margin of about 3.1%.

Operating income rose about 1.6% to $29.8 billion as reported, or 5.4% adjusted in constant currency. The adjusted figure excludes items such as $722 million in share-based compensation expense at Walmart International and $285 million in legal charges.

The bulk of the gain in net income came from other gains and losses, which were a $2.1 billion gain in fiscal 2026 and a $794 million loss a year earlier.

As of its Jan. 31, 2026, balance sheet, the company's debt-to-equity ratio was approximately 0.7x on the same basis used for Home Depot, which counts borrowings and lease obligations against shareholder equity. The current ratio stood at roughly 0.8x. According to its latest annual report, Walmart produced close to $14.9 billion in free cash flow, which it defines as operating cash flow minus capital expenditures, after spending $26.6 billion on property and equipment.

In the second quarter of fiscal 2027, which ended July 31, 2026, total revenue rose 5.9% to $187.9 billion, and global eCommerce sales rose 23%. Walmart U.S. comparable sales excluding fuel rose 2.6%. Operating income rose 28.8%, or 17.4% adjusted in constant currency, and the company said the result includes tariff refunds it received.

CFO John David Rainey said on the earnings call that the refunds were about $2.9 billion, that they added approximately 750 basis points to operating income growth, and that underlying growth was at the top end of its 7% to 10% guidance. In its Aug. 20 earnings release, Walmart raised its fiscal 2027 adjusted earnings per share outlook to $2.80 to $2.87 from $2.75 to $2.85, and management said on its earnings call that it expects more than $2 billion of incremental fuel-related costs this year.

Risk profile comparisonHome Depot's annual report ties its results to the state of the housing and home improvement markets and to commodity price inflation and deflation.

On Aug. 12, 2026, the company announced that CEO Ted Decker was taking a temporary medical leave and that it expects him to return within the next few months. In the interim, Senior Executive Vice President Ann-Marie Campbell took over day-to-day operations, and Chief Financial Officer Richard McPhail took over finance and the Pro subsidiaries.

Home Depot also faces a proposed class action in federal court in California alleging that license-plate-reader cameras in the parking lots of its California stores violate state privacy law.

The allegations are unproven. Its annual report also warns that strategic transactions involve risks and that it may not realize their anticipated benefits, a warning that applies to the integration of SRS and GMS.

Walmart's annual report cites strong competition from other retailers and wholesale club operators, along with the cost of its eCommerce and technology investments.

It also cites cyberattacks on its information systems as a risk that could damage its reputation and lead to litigation or fines.

In September 2026, Walmart agreed to a $16 million settlement with seven California district attorneys over allegations that it sold expired infant formula and over-the-counter drugs, and prosecutors said they found no evidence that the sales caused physical harm.

In August 2026, Walmart also agreed to pay $50 million to resolve a federal government lawsuit over opioid prescriptions that its pharmacies allegedly filled, and the Drug Enforcement Administration said there has been no determination of liability. Currency exchange rates also affect its results.

Valuation comparisonHome Depot trades at a lower multiple of forward earnings, while Walmart trades at a lower multiple of its sales over the past 12 months.

MetricHome DepotWalmartForward P/E18.9x36.1xP/S ratio1.7x1.1xValuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers.

While Home Depot looks like the better buy to me, I'd treat it as a multi-year holding, given that growth in home improvement spending remains modest.

The company's own guidance calls for comparable sales growth of approximately flat to 2% this fiscal year, and CEO Ted Decker took a temporary medical leave in August.

What draws me in is the progress since February. The company has trimmed its total debt by nearly $3 billion while integrating its professional-focused acquisitions. Its debt is still large compared with its equity, though, so I'd keep expectations measured.

Walmart is the steadier grower, with global eCommerce sales up 23% in the quarter ended July 31 and a higher earnings outlook, though its CFO said tariff refunds boosted second-quarter operating income.

Investors already pay a much higher multiple of expected earnings for that strength, and management has pointed to fuel costs and shoppers making trade-offs, which leaves less room for disappointment.

Either way, I'd plan to hold for years and treat it as one holding in a diversified portfolio.

Home Depot has raised its dividend through four straight years of record-low housing turnover, but one number in its quarterly reports could flip that story fast.

Shares of Home Depot (NYSE:HD | HD Price Prediction) are down 13.43% year to date and 20.96% over the past year. Through that decline, the company has kept paying $2.33 per share every quarter. For retirees who own the stock, the price reflects a frozen housing market. The dividend reflects a cash engine that still covers the bill comfortably.

Free Cash Flow Funds the $9.32 Payout
In February, Home Depot raised its quarterly dividend 1.3% to $2.33. That works out to $9.32 a year and marked its 156th consecutive quarterly cash dividend. The quarterly amount has gone up every year since 2013, rising from $0.39 then to $2.33 now.

Free cash flow pays for it. Home Depot produced $12.65 billion of free cash flow in fiscal 2025 from $16.33 billion of operating cash flow. Across 997.69 million shares, the current rate costs roughly $9.3 billion a year, or about 74% of that free cash flow. Measured against fiscal 2025 adjusted EPS of $14.69, the payout ratio is about 63%. The forward yield sits near 3.2%, and the stock trades at about 21 times earnings.

Free cash flow fell 29.53% in fiscal 2025.

Housing Turnover Will Decide This Dividend
Big renovations tend to follow home sales. Sellers fix up a house before they list it, and buyers redo kitchens after they move in. Homeowners who locked in low mortgage rates aren’t moving, so fewer of those projects happen. Existing-home sales ran at 3.99 million in September, just above August’s 3.93 million low. CFO Richard McPhail laid it out in August:

“Housing turnover, just as one point in the economy that we watch, has been at historical lows. It has never been lower as a percentage of the housing stock. We’ve seen housing turnover at these low levels for four years now.”

Even so, second-quarter adjusted EPS of $4.92 came in ahead of the $4.73 consensus, and revenue grew 5.7% to $47.86 billion. The company paid about $2.3 billion in dividends during the quarter. Earlier in the year, CEO Ted Decker said:

“The underlying demand in our business was relatively similar to what we saw throughout fiscal 2025, despite greater consumer uncertainty and housing affordability pressure.”

Lowe’s and Target Show the Trade-Offs
Lowe’s (NYSE:LOW) paid $4.75 per share in fiscal 2025 against $12.28 in adjusted EPS, a payout of about 39%. That leaves it more buffer, but its yield is only about 2.49%. Lowe’s also carries negative shareholders’ equity of $7.437 billion and has guided to flat comparable sales.

Target (NYSE:TGT) paid out about 60% of fiscal 2025 adjusted EPS, while its free cash flow fell 25.69% to $2.835 billion. Its second-quarter EPS of $4.11 included a one-time tariff refund worth $1.65 per share.

Home Depot pays a higher yield than Lowe’s, and it supports that payout with far more free cash flow than Target.

Verdict: Durable, With One Clear Tripwire
Home Depot’s dividend is durable. Free cash flow covers it with more than enough room to spare, and the company has raised it through four years of record-low housing turnover. Fiscal 2026 guidance calls for adjusted EPS growth of flat to 4.0%. That outlook supports more small raises, with modest increases the likely pattern.

One thing would change this answer: another free cash flow decline the size of fiscal 2025’s. That would leave free cash flow near $8.9 billion, below the dividend bill. If that happens, the board would have to fund the payout with debt or slow the raises. Watch free cash flow in each quarterly report.

Dividend investors who want checks arriving on a tighter cadence than Home Depot’s quarterly schedule have options; we rounded up seven monthly payers in a free guide here: The 7 Monthly Dividend Stocks That Pay You Every 30 Days.

Contact [email protected] for any questions or corrections.

Home Depot (HD - Free Report) ended the recent trading session at $294.07, demonstrating a +1.19% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.02%. Elsewhere, the Dow lost 0.35%, while the tech-heavy Nasdaq lost 0.15%.

The stock of home-improvement retailer has fallen by 6.51% in the past month, lagging the Retail-Wholesale sector's gain of 0.63% and the S&P 500's gain of 2.05%.

Analysts and investors alike will be keeping a close eye on the performance of Home Depot in its upcoming earnings disclosure. The company's earnings report is set to go public on November 17, 2026. On that day, Home Depot is projected to report earnings of $3.86 per share, which would represent year-over-year growth of 3.21%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $42.72 billion, up 3.3% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.02 per share and a revenue of $171.44 billion, indicating changes of +2.25% and +4.1%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Home Depot. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

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. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. 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 19.35. For comparison, its industry has an average Forward P/E of 16.52, which means Home Depot is trading at a premium to the group.

It is also worth noting that HD currently has a PEG ratio of 2.07. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Retail - Home Furnishings industry was having an average PEG ratio of 1.47.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 104, positioning it in the top 43% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

HONG KONG, Oct 12, 2026 - (ACN Newswire) - The International Congress of Parkinson's Disease and Movement Disorders (MDS 2026) was held in Seoul, South Korea, from October 4 to 8, 2026. Micot Pharma (2335.HK) presented, for the first time in an electronic poster, nonclinical findings in Huntington's disease (HD) and Phase I clinical results in healthy volunteers for its independently developed drug candidate MT200605. Together with previously announced positive Phase II data in acute ischemic stroke (AIS), these findings are beginning to establish a development path for this small-molecule tropomyosin receptor kinase B (TrkB) agonist from acute brain injury to neurodegenerative diseases.

On-site photo from the MDS 2026 Congress

Organized by the International Parkinson and Movement Disorder Society, the MDS Congress is one of the largest and most influential international scientific meetings in the field. The selection of MT200605's Huntington's disease research for presentation signals recognition by the international scientific community of its clinical value in neurodegenerative diseases.

For Micot Pharma, the significance of this appearance extends beyond the poster presentation itself. It brings MT200605's progress in clinical development for stroke into an international forum for scientific exchange on movement disorders and neurodegenerative diseases. It also gives the market a more complete view of the development program: animal-model findings and Phase I data in healthy volunteers are available for the HD program, Phase II topline results are available for AIS, and the TrkB mechanism provides the central link between research in acute brain injury and chronic neurodegenerative diseases.

On-site photo from the MDS 2026 Congress

MT200605 Explores Disease-Modifying Potential in Huntington's Disease through Motor Improvement and Preservation of Brain Structure

Huntington's disease is an inherited, progressive neurodegenerative disorder. Patients gradually develop chorea, cognitive decline, and psychiatric and behavioral disturbances, eventually becoming fully dependent on care. Current treatments primarily manage symptoms; no treatment can yet halt or reverse disease progression. Protecting neurons and preserving neurological function are therefore important areas of research.

The publicly available MDS 2026 abstract reports that MT200605 improved motor coordination and attenuated whole-brain, cortical, and striatal atrophy in transgenic HD mice. The study also found that levels of the striatal neuronal marker DARPP-32 were maintained and that aggregation of mutant huntingtin protein (mHTT) in the cortex was reduced. In vitro experiments showed activation of TrkB and downstream AKT signaling, as well as enhanced mitochondrial adenosine triphosphate (ATP) production in HD cells.

The value of these findings lies in the converging evidence from behavioral, imaging, and cellular pathology measures. Beyond improved motor performance, changes in brain atrophy and aggregation of the disease-causing protein provide a more concrete basis for investigating a potential disease-modifying effect.

The poster also presented results from a Phase I clinical study of MT200605 in healthy adults. The study used a single-center, randomized, double-blind, placebo-controlled design and comprised single ascending dose (SAD) and multiple ascending dose (MAD) stages.

No serious adverse events, deaths, or withdrawals due to adverse events were reported. Drug-related adverse events were all mild and self-limiting. Pharmacokinetic results showed that drug exposure increased with dose, with no appreciable accumulation after multiple doses and an overall predictable pharmacokinetic profile. These results provide a safety and pharmacokinetic foundation for subsequent clinical studies in patient populations.

TrkB Signaling Provides a Basis for Extending Development from Acute Brain Injury to Neurodegenerative Diseases

A defining feature of MT200605's mechanism is its pharmacological modulation of the brain-derived neurotrophic factor (BDNF)/TrkB neurotrophic signaling pathway. This pathway contributes to neuronal survival, synaptic maintenance, and mitochondrial stability, providing an important biological basis for neuroprotection and the preservation of function.

MT200605's pharmacological design reportedly combines agonism of the BDNF/TrkB pathway with attenuation of oxidative stress and relief of microcirculatory impairment caused by calcium ion-induced contraction of vascular smooth muscle. The development rationale is to explore more comprehensive neuroprotection by intervening in multiple components of the injury process.

From a mechanistic perspective, targeting TrkB provides a rationale for extending MT200605's development into chronic neurodegenerative diseases. Although the pathogenic processes of stroke and Huntington's disease differ substantially, neuronal injury, loss of function, and insufficient neurotrophic support offer points of entry for research across diseases. The findings across multiple measures in the HD model provide new experimental support for this direction.

Positive Phase II Stroke Results Show a Significant Reduction in Disability and Potential for Renal Protection

MT200605 has completed a Phase II clinical trial in acute ischemic stroke. The multicenter, randomized, double-blind, placebo-controlled study enrolled 360 participants. The primary efficacy endpoint was the proportion of patients achieving a modified Rankin Scale (mRS) score of 0-1 at 90 days after stroke onset.

Results disclosed by the company show that the proportions of patients achieving favorable functional outcomes in both the medium- and high-dose groups were higher than in the placebo group, demonstrating a treatment advantage rarely seen among drugs in this class. For the high-dose group, achieving an mRS score of 0-1 corresponded to an increase of more than 100% in the odds of functional recovery versus placebo, as reflected by the odds ratio (OR). In terms of clinical benefit, approximately one additional patient moved from "requiring assistance" to "being able to live largely independently" for every six patients treated. Over decades of neuroprotective drug development, agents demonstrating such a marked difference in functional outcomes versus placebo in a randomized controlled trial have been exceptionally rare. The difference between the high-dose group and placebo was statistically significant, and the study showed a clear dose-response relationship. The study also observed a trend toward early neurological recovery in the high-dose group, with no serious adverse events related to the investigational drug.

For stroke-associated acute kidney injury (AKI), the study also observed a trend toward a dose-dependent reduction in incidence, providing exploratory clinical evidence for further research into the mechanism of "dual brain and kidney protection." The design rationale for this dual protection was validated in the Phase II trial: MT200605 significantly reduced disability and showed the potential to lower AKI incidence in patients with AIS in a dose-dependent manner. AKI incidence in the high-dose group was more than 80% lower than in the placebo group. This result addresses the existing therapeutic gap in preventing AKI in patients with AIS.

Neurological Recovery and Combined Brain and Kidney Protection Offer the Potential to Fill a Therapeutic Gap

Currently, no neuroprotective drug for AIS has a Class I recommendation supported by Level A evidence in Chinese clinical guidelines. Most marketed agents have Class II recommendations supported by Level B evidence.

Mainstream neuroprotective drugs in China include butylphthalide, edaravone, and edaravone dexborneol. Their mechanisms are generally limited to blocking injury through one or two targets, without a mechanistic design that simultaneously promotes neural repair, and none has demonstrated a statistically significant difference in long-term functional outcomes such as those measured by the mRS.

Butylphthalide has a research foundation in neuroprotection involving multiple targets. The randomized BAST trial enrolled 1,216 patients with acute ischemic stroke who received intravenous thrombolysis and/or endovascular treatment. Favorable functional outcomes at 90 days were achieved by 56.7% of patients in the butylphthalide group and 44.0% in the placebo group. The endpoint used different mRS thresholds according to baseline stroke severity, providing evidence for combining neuroprotection with reperfusion treatment.

Edaravone's principal pharmacological action is free radical scavenging, while edaravone dexborneol extends antioxidant and anti-inflammatory intervention through a combination formulation. In the Phase III TASTE study involving 1,165 patients, the proportions achieving an mRS score of ≤1 at 90 days were 67.18% in the edaravone dexborneol group and 58.97% in the edaravone group. Edaravone dexborneol was superior to edaravone, with a statistically significant difference.

The research indicates that MT200605's differentiation should not be reduced to a simple numerical comparison of efficacy with existing agents. The more relevant question to follow is whether the TrkB neurotrophic pathway can translate the functional outcome signals observed in patients with AIS into clinical benefits in chronic neurodegenerative diseases. As a first-in-class (FIC) investigational drug, MT200605 has completed clinical proof of concept. Its effect size far exceeds that of other neuroprotective agents, and it has the potential to become the first treatment in this field to receive high-level recommendations as a first-line option in both Chinese and international clinical guidelines.

Another "silent killer" can emerge following stroke: acute kidney injury (AKI).

Approximately 19% of patients with AIS develop AKI, and the risk of in-hospital death among patients with AKI is around two to three times that of patients without AKI. Product labeling for approved mainstream neuroprotective drugs advises caution or contraindicates use in patients with impaired renal function or severe renal failure. As a result, precisely those stroke patients facing a higher risk of death are excluded from treatment.

A further reason to follow MT200605 is that, alongside the positive signals for 90-day functional outcomes in the AIS Phase II trial, the company has disclosed a new area of investigation: renal protection after stroke. According to Micot Pharma's announcement, AKI incidence in the high-dose group was approximately 80% lower than with placebo in the Phase II data. This means that MT200605 is currently the world's only investigational neuroprotective drug with the potential to specifically prevent and treat post-stroke AKI, and the only agent in this class that could potentially be approved and used with a "renal protection" claim in its labeling.

MT200605's ability to protect both the brain and kidneys is closely linked to its distinctive mechanism of action.

TrkB receptors are expressed not only in brain tissue but also in renal podocytes, renal tubular epithelial cells, and the juxtaglomerular apparatus. Their activation can stabilize the podocyte cytoskeleton, inhibit renal tubular epithelial cell apoptosis by counteracting endoplasmic reticulum stress through PI3K/AKT signaling, and activate antioxidant defenses through the nuclear translocation of nuclear factor erythroid 2-related factor 2 (NRF2), an important target of neuroprotective drugs.

A single molecule protects two organs affected by stroke. The protective pathways in the brain and kidneys share the core PI3K/AKT signaling cascade, disrupting at its origin the vicious cycle of brain injury leading to AKI, worsening renal function, and further aggravation of brain injury.

The MDS presentation and AIS Phase II topline results are therefore complementary. The former expands MT200605's international scientific visibility and the scope of its HD research, while the latter provides a translational foundation in patient functional outcomes. For a biopharmaceutical company focused on innovative medicines, a development program built around one mechanism, multiple disease settings, and progressively accumulating evidence at different levels often has greater scope for expansion than an early-stage narrative centered on a single indication.

Conclusion

In the near term, MDS 2026 has given Micot Pharma an international platform to present its research in movement disorders. Over the medium to long term, the program's value as a platform will depend on whether the company can continue to use verifiable clinical data to translate the potential of the TrkB mechanism across different disease settings into benefits for patients. For the capital markets, this is the central rationale for continuing to follow MT200605's development.

Source: Shaanxi Micot Pharmaceutical Technology Co., Ltd.

Copyright 2026 ACN Newswire . All rights reserved.

Jim Cramer built his reputation chasing momentum, so when AI stocks cratered and he credited a stock he openly hates for saving his portfolio, it raised a question worth sitting with: what exactly do you owe the boring names you…

Jim Cramer is best known for trading momentum, so the stock he picked to protect his portfolio on Thursday stood out. As artificial intelligence stocks fell after a Financial Times report on OpenAI’s revenue, the Mad Money host pointed to a dividend payer he openly dislikes having.

“Do you know how much I’ve hated owning Home Depot? The answer is about as much as I loved it today. Because it’s keeping me in the game on days like this one,” Jim Cramer said on Mad Money on October 8, 2026. He added that diversification keeps you in the game.

AI Selloff Sent Money Toward Forgotten Names Oracle (NYSE:ORCL | ORCL Price Prediction) and Broadcom (NASDAQ:AVGO) led the decline. Beaten-down stocks outside the AI trade rallied as Treasury yields eased. Home Depot (NYSE:HD) was among them. CNBC reveals that Cramer’s Charitable Trust having shares of Broadcom and Home Depot.

A boring dividend stock does its job by holding up when a crowded trade unwinds, so an investor concentrated in AI does not get shaken out entirely.

Why Home Depot Has Been So Hard to Own Cramer’s frustration is supported by the chart. Shares traded at $291.90 midday Friday, down 13.31% year to date and 21.77% over the past year. Over five years, the stock is down 0.87%.

Housing is the anchor. On the August earnings call, CFO Richard McPhail said housing turnover “has never been lower as a percentage of the housing stock” and there is “just no sign of an inflection point at this moment.” The 10-year Treasury yield stood at 5.28% on October 7, keeping mortgage rates high. The company announced interim management plans on August 12 while its CEO takes temporary medical leave.

What You Get for Putting Up With Boring The business keeps growing anyway. Second-quarter revenue reached $47.86 billion, up 5.71% year over year, and adjusted EPS of $4.92 beat the $4.73 consensus, according to the company’s results filed with the SEC. Comparable sales rose 1.7%, online comps grew 11%, and management confirmed full-year guidance. McPhail said “we’re confident we’re taking share.”

The company paid about $2.3 billion in dividends during the quarter, supported by $12.65 billion of free cash flow in fiscal 2025. The quarterly dividend is $2.33 per share, or $9.32 annualized, for a yield near 3.10%. Home Depot called the February declaration its 156th consecutive quarterly cash dividend.

The quarterly payout sat at $0.225 in both 2008 and 2009, frozen during the last housing collapse but never cut. It has since rose to $2.33. Over ten years, the stock is up 192.84% before dividends.

Where the Boring Thesis Gets Tested A 10-year Treasury at 5.28% pays more than Home Depot’s dividend, so the stock must earn its place through payout growth and resilience. This year’s raise was only 1.3%, and management guides fiscal 2026 diluted EPS to flat to +4.0%. Leverage runs high, with debt-to-equity near 5.10 and net debt to EBITDA around 2.65.

The valuation trades at about 21 times trailing earnings and 20 times forward estimates. Wall Street is split, with 4 Strong Buy, 17 Buy and 15 Hold ratings. The average price target is $378.34.

What to Watch Before the Next Dividend Decision Cramer’s point is about portfolio construction. A stock that lags during an AI rally can keep a portfolio standing when that rally breaks. For Home Depot, track comparable sales in the third-quarter report, any change in housing turnover as yields move, updates on the CEO’s leave, and the size of the next dividend raise. If the payout keeps growing through “frozen housing conditions,” the boring case gets stronger.

Contact [email protected] for any questions or corrections.

Home Depot (HD) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term.

Home Depot is rated BUY, with its stock decline attributed to macro-driven housing market weakness, not company fundamentals. HD maintains solid fundamentals: comparable sales growth, reaffirmed guidance, and $9.7B free cash flow in H1 2026 despite harsh conditions. The housing market is bottoming, not contracting further; high mortgage rates are the primary drag on activity, per a proprietary housing composite index.

Home Depot has shed a quarter of its value in a year, and the temptation to buy the dip is real. But there is one specific price level, built from dividend math rather than gut instinct, that separates a disciplined…

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Shares of Home Depot (NYSE:HD | HD Price Prediction) traded at $285.10 as of 10:01 AM ET on October 7, 2026, down 0.55% in Wednesday’s session. The stock has fallen 15.33% year to date and 24.68% over the past twelve months. Most of the damage is recent. Shares are down 11.2% over the past month.

Home Depot is still a large, functioning business. It operates 2,364 retail stores and over 1,340 SRS Distribution locations, and it employs over 470,000 associates. It’s a component of the Dow Jones Industrial Average, with a market capitalization of $284.4 billion and a trailing price to earnings ratio of 20.

A decline this large in a business like this warrants a closer look at valuation.

Why Waiting for the Bear Case Fails The obvious move is to wait for the bear case. Our price prediction model puts Home Depot’s conservative one-year price at $318.93, base case at $348.72, and bull case at $395.02. Analyst consensus is $377.19.

All estimates exceed today’s price. The model implies 22.75% upside.

The data shows no bearish scenario because the entire range sits above the current price. Even the model’s bear case sits above today’s price.

52-Week Low Sits Too Close to Matter The 52-week low of $277.15 is a attractive line. The 52-week high is $389.18. Revisiting that low takes a decline of just 2.8% from here.

That margin is too thin. A past low shows only where selling stopped once. I need a threshold based on intrinsic value.

Dividend Yield Anchor Behind My Number Dividend yield is a reasonable anchor. It pays regardless of multiple compression.

Home Depot’s current dividend yield is 3.2%, implying an annual payout of $9.12 per share at today’s price.

If that payout stays the same, the ladder looks like this:

Target Yield Share Price 3.5% $260.60 3.75% $243.23 4% $228.03 A 3.75% yield corresponds to a share price of $243.23. Getting there takes a 14.7% decline from here.

The 3.5% level is close enough to today that it asks for little patience. A 4% yield on a company of this quality would likely mean something had genuinely gone wrong. The middle tier asks for a real discount without needing a disaster, the same income-ladder logic we laid out in a free guide to building a dividend ladder you never have to sell out of.

I set the yield target first, then calculated price. Reversing that logic kills the method.

Caveats That Could Break the Math The $9.12 payout is approximate, derived from a price and yield reading. This assumes the dividend holds. A cut voids the level; a raise requires recalculation. A lower price reflects market view. The threshold signals when to review before acting. Discipline Matters More Than the Stock A written threshold set in calm conditions removes emotion from the next decision. The reassessment level is $243.23, making the next review mechanical.

Contact [email protected] for any questions or corrections.

Home Depot (HD - Free Report) closed the most recent trading day at $286.69, moving +1.97% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.58%. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq added 0.45%.

Shares of the home-improvement retailer have depreciated by 12.43% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 4.5%, and the S&P 500's gain of 0.84%.

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 November 17, 2026. The company's upcoming EPS is projected at $3.86, signifying a 3.21% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $42.72 billion, up 3.3% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $15.02 per share and revenue of $171.44 billion, indicating changes of +2.25% and +4.1%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for Home Depot. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.07% rise in the Zacks Consensus EPS estimate. Home Depot currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Home Depot is currently being traded at a Forward P/E ratio of 18.73. Its industry sports an average Forward P/E of 16.8, so one might conclude that Home Depot is trading at a premium comparatively.

Investors should also note that HD has a PEG ratio of 2 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Home Furnishings was holding an average PEG ratio of 1.45 at yesterday's closing price.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 112, this industry ranks in the top 46% of all industries, numbering over 250.

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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Key Takeaways Home Depot posted 5.7% sales growth as repair-and-maintenance demand offset larger-project softness.Pro comps outpaced DIY, supported by investments in assortment, delivery, sales and specialized services.Online comps rose 11%, while Home Depot reaffirmed FY26 comparable-sales of flat to 2% growth. The Home Depot Inc. (HD - Free Report) continues to show defensive characteristics even as the housing backdrop remains challenging. Housing affordability and consumer uncertainty are still weighing on larger home-improvement projects, while housing turnover remains near historical lows. Management noted that turnover has stayed depressed for roughly four years and said that there is still no clear sign of an inflection point.

Despite these pressures, Home Depot delivered resilient fiscal second-quarter results. Sales increased 5.7% year over year to $47.9 billion, while comparable sales rose 1.7%. Demand was also broad-based, with 13 of 16 merchandising departments posting positive comps. Importantly, customers continued to spend on smaller repair and maintenance projects, helping offset softness in larger discretionary categories. Big-ticket transactions above $1,000 increased 2.4%, although management acknowledged that larger discretionary projects remain under pressure.

The Pro business provides another layer of resilience. Pro comps were positive and outpaced DIY, supported by investments in product assortment, delivery, sales capabilities and specialized services. Digital momentum is also strengthening, with online comparable sales rising 11% year over year for a fifth consecutive quarter of double-digit growth.

Home Depot is not fully insulated from a weak housing cycle, but its repair-and-maintenance exposure, Pro strength, market-share gains and omnichannel investments make the business relatively defensive. The company reaffirmed its fiscal 2026 guidance of flat to 2% comparable-sales growth, suggesting it can continue navigating subdued housing demand while positioning itself for eventual recovery.

How Are Peers Performing in a Weak Housing Market?Lowe’s Companies Inc. (LOW - Free Report) and Floor & Decor Holdings, Inc. (FND - Free Report) are also navigating a weak housing market, with pressured big-ticket discretionary demand offset to varying degrees by repair-and-maintenance activity, Pro exposure and company-specific growth initiatives.

Lowe’s continues to display defensive qualities despite a weak housing cycle. Comparable sales rose 0.2% in the second quarter of fiscal 2026, marking a fifth consecutive quarter of positive comps, as strength in Pro, Online and Home Services helped offset softer discretionary DIY demand. Repair-and-maintenance projects also remained resilient, while disciplined expense management and productivity initiatives supported profitability amid persistent macro and housing pressures.

Floor & Decor shows some defensive characteristics despite a weak housing cycle. Second-quarter 2026 sales rose 3%, while Pro sales increased about 4% and represented roughly 55% of total sales, helping offset softness in large discretionary flooring projects. Comparable sales declined 2.1%, reflecting subdued housing turnover, but disciplined expense management, strong free cash flow and market-share initiatives supported stable adjusted earnings per share (EPS).

HD’s Price Performance, Valuation & EstimatesShares of Home Depot have lost 27.3% in the past year compared with the industry’s decline of 31.2%.

Image Source: Zacks Investment Research

From a valuation standpoint, HD trades at a forward price-to-earnings ratio of 18.01X compared with the industry’s average of 16.67X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for HD’s fiscal 2026 and 2027 EPS implies year-over-year growth of 2.3% and 6.8%, respectively. The company’s EPS estimate for fiscal 2026 has moved up 0.1% in the past seven days. Meanwhile, the consensus estimate for fiscal 2027 EPS has been unchanged in the past 30 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 (HD - Free Report) closed the most recent trading day at $284.49, moving -1.23% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.25% for the day. Meanwhile, the Dow lost 0.86%, and the Nasdaq, a tech-heavy index, added 0.24%.

The home-improvement retailer's shares have seen a decrease of 9.92% over the last month, not keeping up with the Retail-Wholesale sector's loss of 6.54% and the S&P 500's loss of 0.42%.

Market participants will be closely following the financial results of Home Depot in its upcoming release. The company plans to announce its earnings on November 17, 2026. The company's upcoming EPS is projected at $3.87, signifying a 3.48% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $42.72 billion, indicating a 3.3% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $15 per share and revenue of $171.35 billion, indicating changes of +2.11% and +4.05%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Home Depot. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% increase. Home Depot is currently a Zacks Rank #3 (Hold).

Digging into valuation, Home Depot currently has a Forward P/E ratio of 19.2. This valuation marks no noticeable deviation compared to its industry average Forward P/E of 19.2.

One should further note that HD currently holds a PEG ratio of 3.17. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Retail - Home Furnishings industry held an average PEG ratio of 1.93.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

Picking value stocks isn't easy. That's because value investing involves buying stocks that you perceive as undervalued. Companies' stock prices and valuations can fall for any number of reasons. Value investors believe the market has mispriced their prospects, which will result in appreciable gains.

Home Depot (HD -0.27%) trades at a higher share price than Lowe's Companies (LOW -0.14%), but that doesn't mean it's the better value. You'll need to compare valuations based on a common metric, like price-to-earnings (P/E) ratios, compared to their long-term growth prospects.

Image source: Getty Images.

Home Depot and Lowe's both compete in the home-improvement retail space. The former is the largest company in the sector, generating about $165 billion in annual sales. That's nearly double competitor Lowe's $86 billion in sales.

Both companies have high market shares, but their sales are sensitive to macroeconomic conditions. These include home sales, interest rates, the job market, and consumer confidence. Right now, with elevated inflation, home sales and borrowing rates have been affected, and homeowners have put off major renovations.

That explains the companies' tepid sales growth. However, Home Depot seems to be doing better. The company's fiscal second-quarter (ended Aug. 2) same-store sales (comps) grew 1.7%, and its gross margin expanded from 33.4% to 33.7%. Lowe's fared worse, with comps increasing just 0.2% and gross margin contracting from 33.8% to 33%.

Premium Feature

Moneyball Superscore

74/100

Today's Change

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-0.27

%) $

-0.78

Current Price

$

289.11

The investment decision With the economic headwinds, both companies' stock prices haven't fared well lately. Home Depot's share price has lost 14.8% this year, through Sept. 25. During this time, Lowe's stock has dropped 21.5%. They trailed the S&P 500 index's 13.1% gain.

However, for patient investors willing to wait for economic conditions to improve and homeowners to undertake major renovations, the stocks offer upside since they trade at better valuations.

Home Depot's stock has a P/E ratio of 21, down from 24 at the start of the year and lower than its 10-year median of 23. Lowe's shares have a P/E multiple of 16, down from 21, which is also its 10-year median.

Premium Feature

Moneyball Superscore

68/100

Today's Change

(

-0.14

%) $

-0.27

Current Price

$

187.39

While both stocks trade at attractive valuations compared to their historical P/E ratios, I favor Home Depot as the better value stock compared to Lowe's. With its bigger size giving it advantages like convenience and economies of scale, it seems Home Depot will emerge stronger once better economic times arrive.

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.

Over the past month, shares of this home-improvement retailer have returned -11.2%, compared to the Zacks S&P 500 composite's +1% change. During this period, the Zacks Retail - Home Furnishings industry, which Home Depot falls in, has lost 11.8%. The key question now is: What could be the stock's future direction?

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.

Revisions to Earnings EstimatesRather 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.

Home Depot is expected to post earnings of $3.87 per share for the current quarter, representing a year-over-year change of +3.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.

The consensus earnings estimate of $15 for the current fiscal year indicates a year-over-year change of +2.1%. This estimate has changed +0.1% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $16.04 indicates a change of +6.9% from what Home Depot is expected to report a year ago. Over the past month, the estimate has changed -0.1%.

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 $42.72 billion indicates a year-over-year change of +3.3%. For the current and next fiscal years, $171.35 billion and $177.57 billion estimates indicate +4.1% and +3.6% changes, respectively.

Last Reported Results and Surprise HistoryHome Depot reported revenues of $47.86 billion in the last reported quarter, representing a year-over-year change of +5.7%. EPS of $4.92 for the same period compares with $4.68 a year ago.

Compared to the Zacks Consensus Estimate of $47.23 billion, the reported revenues represent a surprise of +1.33%. The EPS surprise was +4.46%.

Over the last four quarters, Home Depot surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time 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 C on this front, indicating that it is trading at par with 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.

Home Depot's stock sits near a 52-week low and housing turnover has been frozen for four years, yet the company keeps writing dividend checks. Whether that streak survives depends on three numbers investors should watch closely.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Home Depot (NYSE:HD | HD Price Prediction) closed at $293.20, down 11.8% in a month and 25.98% over the past year, trading near its 52-week low of $284.85. The slide lifted the yield to 3.13% and raises a pointed question: can a $9.32 annual payout hold if housing stays locked?

Housing Turnover Is Stuck at Record Lows People who stay put skip the renovation that follows a move. Existing home sales fell to a 3.98 million annualized pace in August, the lowest reading of the past year. On the August earnings call, Richard McPhail offered no comfort:

“We’ve seen housing turnover at these low levels for four years now.”

He added there is “just no sign of an inflection point at this moment.” That pressure hits Lowe’s (NYSE:LOW) and Sherwin-Williams (NYSE:SHW) as well, since both depend on the same homeowner willingness to commit to projects.

Pros Are Doing the Heavy Lifting Second-quarter comp sales rose 1.7% even as transactions fell 1.0%. Pro posted positive comps and outperformed DIY, and SRS, now above 1,340 locations, “comped above the company average.” Contractors doing repair work keep buying when discretionary projects slow. Billy Bastek acknowledged the split:

“Larger discretionary projects remain under pressure.”

Free Cash Flow Still Covers the Check Fiscal 2025 free cash flow was $12.65 billion, down 22.54%, against $9.152 billion in dividends. This year looks stronger. Operating cash flow reached $6.032 billion in the first quarter and $5.39 billion in the second, with capex of $844 million and $880 million, versus quarterly dividends near $2.32 billion. Buybacks, which absorbed $7.951 billion in the fiscal year ended January 2024, have effectively stopped, leaving cash for the payout.

Debt Is the Real Constraint Acquisitions left total debt at $62.567 billion against $2.085 billion in cash. Net debt/EBITDA stands at 2.65, interest coverage at 8.66, and net interest expense is guided near $2.3 billion. That leverage is manageable but leaves little room for generous raises.

Raise History Reveals Shrinking Increases Year Quarterly Dividend 2023 $2.09 2024 $2.25 2025 $2.30 2026 $2.33 This year’s bump was just 1.3%. Precedent matters here: through the last housing crash, the quarterly payout held flat at $0.225 from 2007 through 2009. Management froze it rather than cut it. The company has now paid 156 consecutive quarterly dividends. A smaller raise is not the same warning as a stretched yield, but the tells that a payout is in real trouble are worth knowing cold, and we listed the seven of them in a free report on dividend traps.

Verdict: The Dividend Is Safe, Raises Are Not The payout survives a frozen market. CEO Ted Decker said in May that demand was “relatively similar to what we saw throughout fiscal 2025, despite greater consumer uncertainty and housing affordability pressure.” Guidance calls for EPS growth of flat to 4.0%, and the stock trades at roughly 21 times earnings.

Income holders should track three things: quarterly operating cash flow minus capex against the roughly $2.3 billion dividend, whether net debt/EBITDA rises above 2.65, and the size of February’s raise. A token increase would signal the 2008 strategy: hold, protect, wait for housing.

Contact [email protected] for any questions or corrections.

Key Takeaways Home Depot's Pro strength, SRS growth and broad assortment support continued market-share gains.HD posted 5.7% sales growth, 11% online growth and a 5.1% increase in adjusted EPS.Floor & Decor is expanding stores, Pro penetration and omnichannel capabilities to support growth. The U.S. home-improvement market offers an interesting contrast between scale and specialization, putting The Home Depot Inc. (HD - Free Report) and Floor & Decor Holdings Inc. (FND - Free Report) on different competitive paths. Home Depot holds a commanding position in the broader home-improvement industry, supported by its extensive store network, vast product assortment and strong presence among both DIY customers and professional contractors. Its business spans building materials, appliances, flooring, décor, lawn and garden, and maintenance-related products and services.

Floor & Decor, by comparison, operates as a specialized hard-surface flooring retailer, focusing on tile, wood, laminate, vinyl, natural stone and related installation products. While its market share is far smaller than Home Depot’s overall, FND has carved out a meaningful position in the fragmented flooring category through deep assortments, direct sourcing and warehouse-format stores.

The face-off therefore centers on HD’s scale and diversification versus FND’s focused category expertise and niche market positioning.

The Case for HDThe investment case for Home Depot rests on its ability to leverage scale, category breadth and an increasingly integrated Pro ecosystem to capture share even in a sluggish housing market. Management said that the company “took share in a difficult environment,” supported by broad-based demand across 13 of 16 merchandising departments. Pro customers posted positive comps and outperformed DIY, while SRS grew above the company average and gained significant share across its verticals.

Home Depot ended the quarter with 2,364 stores, reinforcing a physical footprint that supports retail demand and fulfillment. Management expects further market-share gains in fiscal 2026.

HD is strengthening its position as both a broad-based home-improvement retailer and a one-stop platform for professional customers. SRS, GMS and HVAC capabilities are expanding the product catalog available to builders, remodelers and commercial customers, while 90% of stores have completed an SRS-facilitated QuoteCenter sale in the past year. Exclusive and differentiated brands, including Milwaukee Packout, and select USG and Ruco offerings, deepen customer loyalty, particularly among Pros.

Digital innovation is another competitive lever: online sales grew 11%, Magic Apron now handles millions of customer questions monthly and nationwide Express Delivery can deliver tens of thousands of products within three hours.

Financial execution adds weight to the story. Second-quarter fiscal 2026 sales climbed 5.7% to $47.9 billion, comps rose 1.7% and adjusted EPS advanced 5.1% to $4.92. Big-ticket transactions increased 2.4%, while record on-shelf availability, faster fulfillment and technology-enabled service helped lift engagement. With fiscal 2026 sales expected to rise 2.5-4.5%, SRS is projected to deliver mid-single-digit organic growth and management is reaffirming its market-share ambitions. HD’s investment thesis centers on disciplined execution, Pro wallet-share expansion and digital convenience offsetting persistent pressure on large discretionary projects.

The Case for FNDFloor & Decor presents a compelling specialization-led investment case in the fragmented hard-surface flooring market. The company does not disclose an exact industry market-share percentage in the transcript, but management noted that roughly 60% of the competitive landscape remains controlled by independent retailers, underscoring the runway for organized players to capture share.

FND’s differentiated warehouse model, broad in-stock assortment and value positioning continue to resonate with both homeowners and professionals. Pros are particularly important, accounting for about 55% of second-quarter sales and growing roughly 4% year over year, while management believes they influence up to 20% of the remaining consumer sales.

The strategy increasingly revolves around gaining wallet share with Pros, expanding differentiated merchandise and sharpening omnichannel capabilities. Installation materials, tile and wood outperformed company comps, while private-label collections such as NatureMatch broaden FND’s appeal through premium design at accessible price points. The company is also leaning into better-and-best offerings, selective pricing actions and opportunity buys, particularly in laminate and vinyl. Meanwhile, 11 warehouse stores opened in the first half, extending FND’s reach into attractive Tier 1 and Tier 2 markets.

Digital innovation adds another growth lever. Online penetration reached 20.3% of sales, up from 18.6% a year earlier, while FND is undertaking an 18-24 month omnichannel transformation and plans to launch a dedicated Pro app integrating purchasing, loyalty, pricing and project management.

Financially, second-quarter 2026 sales rose 3% to $1.25 billion, adjusted EPS was 58 cents despite a 2.1% comps decline and adjusted EBITDA increased 1.2% to $152 million. With management targeting continued market-share gains despite weak housing activity, the thesis rests on Pro momentum, category authority, digital modernization and disciplined expansion.

How Does the Zacks Consensus Estimate Compare for HD & FND?The Zacks Consensus Estimate for Home Depot’s current fiscal year indicates a 4.1% increase in sales and 2.1% growth in EPS from last year's actuals. For the next fiscal year, the consensus estimate indicates a 3.6% rise in sales and 6.9% growth in earnings. The consensus estimate for EPS for the current fiscal year has been unchanged in the past 30 days, while for the next fiscal year, it has fallen 0.1%.

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The Zacks Consensus Estimate for Floor & Decor’s current fiscal-year sales and EPS implies growth of 3.8% and 3.7%, respectively, from the year-ago period’s actuals. For the next fiscal year, the consensus estimate indicates a 5.7% rise in sales and 13.4% growth in earnings. The consensus estimate for EPS for the current and next fiscal years has been unchanged in the past 30 days.

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HD vs. FND: A Look at YTD Stock PerformancesHome Depot shares have rallied 26% year to date, whereas Floor & Decor has risen 13%.

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Dive Into Stock Valuations of HD & FNDHome Depot is trading at a forward 12-month price-to-earnings (P/E) ratio of 18.64X, below its one-year median of 22.42X. Meanwhile, Floor & Decor’s forward P/E ratio stands at 21.24X, below its median of 27.52X.

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HD or FND: Which Is the Better Bet Now?Home Depot emerges as the stronger pick in this face-off, supported by its superior year-to-date share-price performance, more attractive valuation and solid growth prospects. Its scale, diversified product portfolio, expanding Pro ecosystem and continued digital investments strengthen its ability to capture market share and navigate a still-challenging home-improvement backdrop. The stock’s valuation also appears more compelling relative to Floor & Decor, adding to its investment appeal.

While Floor & Decor offers long-term potential through store expansion, Pro penetration and omnichannel initiatives, Home Depot currently presents a more balanced combination of momentum, value and growth visibility. Moreover, the trend in earnings estimates points to sustained investor optimism around HD’s earnings potential, reinforcing confidence in its ability to deliver steady performance and support further upside.

Both Home Depot and Floor & Decor carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Home Depot's sales rose 5.7% in Q2, while comparable sales increased 1.7% and adjusted EPS gained 5.1%.Pro demand outpaced DIY, while big-ticket transactions above $1,000 increased 2.4% in the second quarter.Home Depot's online sales rose 11%, but comparable customer transactions declined 1% in the second quarter. The Home Depot, Inc. (HD - Free Report) is showing better operating momentum even as the housing backdrop remains difficult. Fiscal second-quarter 2026 sales rose 5.7% year over year to $47.86 billion, while comparable sales increased 1.7%. Adjusted earnings advanced 5.1% to $4.92 per share.

The tension is clear. Pro demand and digital engagement are improving, but customers remain cautious on larger discretionary projects as affordability and low housing turnover constrain renovation activity.

Pro Investments Keep Growth MovingHome Depot’s Pro business posted positive comparable sales in the second quarter and outperformed DIY, with gains across all Pro cohorts. Pro-heavy categories such as decking, dimensional lumber, pipe and fittings, fasteners, hand tools and concrete also grew. Big-ticket transactions above $1,000 increased 2.4%, improving from 0.8% growth in the first quarter.

SRS is broadening that opportunity. It posted positive comparable sales across all verticals and management expects mid-single-digit organic sales growth for fiscal 2026. The Mingledorff’s acquisition added HVAC as a fifth SRS operating line, while integration with GMS expands the product catalog available to larger professional customers. Over the 12 months through the second quarter, 90% of Home Depot stores closed at least one SRS sale through QuoteCenter.

Digital execution is adding another layer. Online sales increased 11% year over year, marking a fifth straight quarter of double-digit growth. More than 65% of stocked parcel deliveries now arrive the same day or next day, while about 55% of stocked big-and-bulky deliveries arrive within two days.

Housing Headwinds Still Cap Big ProjectsTraffic remains a weak point. Comparable customer transactions declined 1% in the second quarter, while comparable average ticket increased 2.8%. That mix shows sales growth is still relying more on spending per visit than on more customer trips.

Larger discretionary projects also remain constrained. Management cited housing affordability and historically low turnover as ongoing drags, with customers favoring smaller repair and maintenance work. Home Depot reaffirmed fiscal 2026 comparable-sales guidance of flat to 2% growth and total sales growth of 2.5-4.5%.

Margins offer limited cushion. Adjusted operating margin slipped 10 basis points in the quarter, and fiscal 2026 guidance calls for an adjusted operating margin of 12.8-13%. The company expects tariff refunds received in the second quarter to be offset by higher fuel, energy and other product input costs over the year.

Peers Face the Same Split DemandLowe’s Companies, Inc. (LOW - Free Report) is seeing a similar divide. Its second-quarter 2026 comparable sales increased 0.2%, supported by Pro, home services and online growth, while the company cited persistent pressure on discretionary DIY spending.

Builders FirstSource, Inc. (BLDR - Free Report) , which is more directly tied to professional construction activity, reported an 8.8% second-quarter sales decline as a lower housing-starts environment weighed on demand. That contrast underscores why Home Depot’s Pro share gains matter, but also why the broader housing cycle remains a meaningful constraint.

What the Zacks Signals Say About HDHD currently carries a Zacks Rank #3 (Hold). The stock also has a VGM Score of B, Growth Score of B, Momentum Score of A and Value Score of C. The stronger Growth and Momentum readings indicate favorable characteristics in those styles, while the Value Score is more middle-of-the-pack.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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The Rank is the more important near-term signal. HD trades at 18.9X forward 12-month earnings, above the Zacks sub-industry’s 17.5X but below the S&P 500’s 19.8X. A Zacks Rank #3 supports a measured stance rather than a clear fresh-buy signal. Home Depot’s Pro ecosystem, SRS expansion and digital gains provide identifiable growth drivers, but soft traffic, muted big-ticket demand and limited margin expansion leave the near-term investment case balanced.