In the closing of the recent trading day, Home Depot (HD) stood at $367.28, denoting a -1.19% move from the preceding trading day.
HD's fundamentals stay strong, with rising Pro sales, supply-chain gains and tech upgrades supporting long-term growth.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
HD's big-ticket remodeling sales stay sluggish as high interest rates push consumers toward smaller, seasonal home improvement projects.
Aiming to expand its reach to professional contractors, Home Depot (HD) announced it will be acquiring GMS Inc. (GMS) for $4.3 billion or $5.5 billion when including debt.
Home Depot is expanding its moat by acquiring SRS and GMS, targeting large contractors and unlocking new growth and efficiency levers. These acquisitions position HD for steady long-term growth, broaden its customer base, and reduce reliance on DIY and small contractors. While the deals are expensive, HD's strong track record and expected synergies support confidence in future free cash flow and shareholder returns.
Home Depot (HD) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
In the closing of the recent trading day, Home Depot (HD) stood at $368.74, denoting a +1.44% move from the preceding trading day.
HD's supply-chain investments and vendor partnerships aim to boost speed, efficiency and resilience.
Home Depot's operational discipline, pricing power, and broad sourcing make it resilient to interest rate and tariff pressures, supporting long-term upside potential. Despite macro headwinds, Home Depot maintains stable sales, strong cash flow, and capital discipline, rewarding shareholders with reliable dividends and manageable debt. The company outperforms Lowe's through its Pro segment strength, broader product range, and technological innovation, gaining market share even in a tough housing market.
The macroeconomic environment remains challenging for Home Depot, with weak consumer confidence, low existing home sales, and ongoing geopolitical uncertainty impacting demand. Valuation models, including dividend discount and price multiples, suggest HD stock is overvalued compared to both sector peers and its historical averages. Recent earnings showed lackluster performance: comp sales declined, margins contracted, accounts receivable rose, and EPS fell year-over-year.
We rate Home Depot a Hold with a $343 price target, as shares are fairly valued and near-term upside is limited by macro headwinds and housing market risks. EPS growth is poised to reaccelerate in FY26, driven by Pro credit adoption, margin leverage, and the return of share buybacks—catalysts underappreciated by consensus. The SRS Distribution acquisition and Pro integration are long-term moats, but execution risk and housing affordability constraints warrant patience over aggressive buying.