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NYSE:HD
Home Depot (HD)
Financials 
Technical Analysis 
Aug 24, 2026, 12:00 amThis summary was created by AI, based on 19 opinions in the last 12 months.
Home Depot (HD) has been facing challenges this year, down approximately 15%, primarily due to rising interest rates and their impact on the housing market. Despite beating earnings expectations in some quarters, the company's stock performance has been lackluster, attributed to factors such as a wet spring and general economic conditions. Analysts are divided on the stock's outlook, with some expressing optimism about the potential for a housing market turnaround if interest rates decrease. The company has shown resilience in its operations, with solid growth in e-commerce and consistent dividend increases over the past decade. However, concerns about consumer spending and inflation stemming from external factors like the US-Iran conflict persist, leading to cautious sentiment among investors.
They report next week. HD suffered when people stopped spending on homes post-Covid, but that's now past. People are spending on experiences, but also on their homes (and goods) again. Since mid-May, HD has risen 17%, outpacing the market. She expects a good report and for positive trends to continue. It helps that commodity prices have come down.
The home reno space has been in a slump, because people have been travelling and enjoying experiences. During Covid, they stayed home and renovated, which she feels will return, because there isn't enough housing to buy. So, people will stay in their homes and fix them up. Lower material costs will help. HD and Sherwin Williams are buys now.
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Premium contentThe Home Depot is the world's largest home improvement specialty retailer, with 2,296 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. In fiscal 2019, The Home Depot had sales of $110.2 billion and earnings of $11.2 billion. The company employs more than 400,000 associates. The Home Depot's stock is traded on the New York Stock Exchange and is included in the Dow Jones industrial average and Standard & Poor's 500 index.
EPS was $3.82 vs $3.8 expected. Revenues were $37.2 mln vs $38.2 expected. The company cut its sales forecast for the full year amid a slowing/normalizing consumer but shares are now up 4% after the release, so some of this weakness was likely expected. On a forward basis, shares trade at 18X earnings which is on the lower end of the valuation range for the company for the last 10 years. There will likely still be another noisy quarter or two in the short-term for the company, but we wouldn't have much in the way of concerns with HD, taking a longer-term outlook.
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Premium contentThe Home Depot is the world's largest home improvement specialty retailer, with 2,296 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. In fiscal 2019, The Home Depot had sales of $110.2 billion and earnings of $11.2 billion. The company employs more than 400,000 associates. The Home Depot's stock is traded on the New York Stock Exchange and is included in the Dow Jones industrial average and Standard & Poor's 500 index. Social media mentions are up 367% in the past 24h.
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A little concerned. Retail has benefit from selling higher-ticket items, but last quarter HD had fewer transitions. It beat only because of those higher-ticket sales. Overall, we're still seeing disinflation, but how much longer can the consumer remain resilient? Savings are down a lot from a year ago. Will there be some trade-down?
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He trimmed, because it's not going anywhere near term. He is building cash for the current market pullback. He will add to Nvidia, Microsoft and Apple on more weakness.