NYSE:HD

Home Depot (HD)

348.32
+8.30 (2.44%)
as of Aug 4, 2026, 7:59:59 pm Market Open.
445 watching
0
Investor Insights
star iconAug 3, 2026, 12:00 am

This summary was created by AI, based on 18 opinions in the last 12 months.

Home Depot (HD-N) is currently facing a challenging environment characterized by a significant downturn in the housing market and rising interest rates, leading to a 15% decline in its stock this year. Analysts express concerns over an upcoming earnings report, suggesting that while the quarter may not be catastrophic, the lack of interest rate cuts puts pressure on consumer spending, especially in home renovations. The company maintains a strong position in the market, particularly in e-commerce and a vast selection of home improvement products. However, the consensus warns of headwinds from inflation and consumer spending challenges due to macroeconomic pressures such as the US-Iran conflict. Some analysts remain optimistic about potential rate cuts and believe that the stock could rebound, while others advise caution given the current uncertainties surrounding housing turnover and interest rates.

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Consensus
Bearish
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Valuation
Undervalued
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LOW,NYSE
TOP PICK
Doesn’t need a housing recovery to do well. Have a repair and maintenance area. Taking share away from Lowes (LOW-N). Think they will grow from the low to mid-teens in earnings. Housing recovery would be a major bonus for them.
SELL
It suffered because of the housing crisis, which is on the path to a slow recovery. HD has been buying back stock. She is not that interested in owning the space.
BUY ON WEAKNESS
His model price is $36.56, only a 7% upside so it is fully valued. If it got down to $30 or less, ($24 would be a great Buy) you could buy.
PAST TOP PICK
(A Top Pick May 6/09. Up 42%.) This was a play on consumer confidence.
BUY
Doesn't think you can go wrong with either Lowe's (LOW-N) or Home Depot (HD-N) as a momentum play in the next 6 to 12 months. Would like to see a better US economy before calling either a core hold in for a long-term hold. Use a 10%-15% stoploss.
PAST TOP PICK
(A Top Pick May 6/09. Up 39.44%.) Still a buy.
HOLD
Tied to housing and consumer recovery, which is just starting. You can expect that things will get better. Well managed. Earnings at about $1.40, which he thinks can double from here. Lowes (LOW-N) could be an alternative play but this is more about being in the sector.
DON'T BUY
US has a lot of government incentives for renovations, new homes and building in general. Problem is this spending eventually falls back on the taxpayer. Has had a pretty nice run. If more government cash is pumped into the system this might go $4-$5 higher based on manufactured earnings. If you own you might want to take some profits.
BUY
Has spent the housing recession retooling and getting their shop in order. Coming out of this he thinks they will be quite a force.
DON'T BUY
Good buy for the next 3-5 years? If you go that long he would say yes but he thinks there are still problems in housing. Not that cheap as a stock at about 16X earnings. Also has some problems with the quality of this company.
TOP PICK
Have done a lot to change their operations. Will probably earned $1.30 this year but on a normalized basis can earn twice that.
HOLD
US housing bubble has completely reversed and housing is getting weaker and weaker. Not only does retail have to improve, but housing has to improve. Will be dead money for a while.
HOLD
(Market Call Minute.) Lot of competition. Chart indicates it is entering into consolidation. Resistance level at around $25.
COMMENT
Had a decent bounce off the bottom in the last few weeks. This is because it is a front-end stock. People look for whatever companies will start to bounce when things start to recover.
COMMENT
If you believe, as he does, that housing is at or very close to a bottom, this will be a decent stock. He also owns Lowes (LOW-N), which he thinks is a higher quality vision for the consumer market. Consider selling this and buying Lowes
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