NYSE:HD
Home Depot (HD)
282.85
+0.39 (0.14%)
as of Oct 2, 2026, 8:00:00 pm Market Open.
443 watching
Financials 
Technical Analysis 0
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Premium contentTOP PICK
Premium contentTOP PICK
Stockchase Research Editor: Michael O'Reilly Following an earnings release that beat analyst estimates by 11%, we select HD as a TOP PICK. Revenues and profits were up on the year, impressive given revenue was up 33% a year ago as pandemic lockdowns had DYI busy on projects. We are not thrilled that they have used some cash reserves to buy back shares aggressively, while adding to debt, but trust in management's strategy. It pays a good dividend, backed by a payout ratio under 50% of cash flow. We recommend a stop loss at $264, looking to achieve $385 -- upside potential over 30%. Yield 2.57% (Analysts’ price target is $385.68)
specialty stores
HOLD
Reported a great quarter today, but shares fell She likes their different avenues of growth. HD's quarterly call was optimistic, such as a strong backlog. Share fell today because investors are worried what will happen 6 months from now, worries of a slowdown or recession and rising rates. But HD's PE has shrunk to 18x forward. Start nibbling below $300. She took some profits last fall around $370. HD benefited a lot from the pandemic, but she believes HD can still grow post-Covid. With interest rates rising, some homeowners are staying in their homes, not selling, and renovating instead which is a tailwind. Be patient.
Christine PooleOwned
specialty stores
TOP PICK
A very innovative company still investing in technology to make stores more efficient, so a long runway to grow. Exceptional management. Down 30% from high and trading at 19X earnings, the low end of the range.
John O'Connell, CFAOwned
specialty stores
BUY
There is a severe housing shortage. A nice way to play housing this is in the repair side. Rising rates will prevent homeowners from moving into new homes and they will stay in place. So, this will drive home renovations. We need to add more supply to homes in the next 12-18 months, but until then there will be pressure on this space.
specialty stores
BUY
Now less home renovation and more toward the industrial building side. There's a bit of a supply crunch in the US. More people will need places to live, especially with immigration from areas of the world in such turmoil.
Brendan CaldwellOwned
specialty stores
Premium contentPAST TOP PICK
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HD reported a fine quarter in mid-May, but the market dumped out of macro fears over the economy: hot inflation, recession, spiking interest rates. May was a time when good companies got punished. However, that spelled a buying opportunity for a company that thrived during Covid as people renovated their homes, lifting shares to $415 by the end of last year, but now trade under $300 at a low 19x valuation. Covid is fading, but there remains a housing shortage impacted by supply shortages (no surprise) as rising rates dampen house-selling.