NYSE:HD

Home Depot (HD)

348.24
+8.22 (2.42%)
as of Aug 4, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconAug 4, 2026, 12:00 am

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

Home Depot, the dominant home improvement retailer in the U.S., has been facing significant challenges this year, down 15% so far, primarily due to concerns surrounding rising interest rates and inflation exacerbated by geopolitical tensions such as the U.S.-Iran conflict. Many experts express skepticism ahead of the company's earnings report, predicting lackluster results that reflect the ongoing weakness in the housing market. With mortgage rates remaining high, consumers are deferring home renovations, which is hurting revenues. While some analysts see potential for a turnaround given the company's solid position and its high yield of 3%, others advise caution, suggesting that deeper interest rate cuts are essential for any substantial recovery in share price. The stock appears to have hit a two-year low, emphasizing the current hostile market conditions for the housing sector.

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Consensus
Bearish
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Valuation
Overvalued
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Similar
LOW, LOW
PAST TOP PICK
(A Top Pick Jan 18/21, Up 34%) It has pulled back low enough that you can enter it. She likes home improvement long term; it's Amazon-proof. Higher rates are scaring the US housing market, but supply remains tight, so it's attractive, supported by household income. US homes are aging, many past 50 years old, some demand for renovations will be strong. Housing turnover remains high. All tailwinds.
PARTIAL SELL
Remains a core holding. Reported this morning, very strong sales, stock bumped up. Strong demand from the pro customer has rebounded. People are renovating rather than moving. Don't buy it here. She took some profits a couple of weeks ago.
BUY ON WEAKNESS
It reports Tuesday. It tends to open up on the day of earnings news, then plunge later in the day during the conference call. If you don't own, then wait till the sell-off.
BUY ON WEAKNESS
Last quarter, they had a slight beat. Beat on top and bottom lines but they cut their guidance on 2021 due to covid. This is a name that you don't need to buy at these levels. They are expensive for what you get. Has had a huge run.
DON'T BUY
He owned this from the late-1990s till 2020 and did a 10-bagger. He sold it not because of the dividend, but a comparison against Lowe's. HD's success largely was a result of organic growth and operating efficiencies. In the past decade, their operating margins moved from 11% to 16.5% vs. Lowe's in a similar, but slower rate. So, he'd rather capture what will come, so he switched to Lowe's
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Dec 08/20, Up 30.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with HD is progressing well. We now recommend trailing the stop (from $230) to $315. If triggered, this would all but guarantee a net investment return of 20%.
PAST TOP PICK
(A Top Pick Jul 27/20, Up 29%) He'd buy it today. Grows dividend quickly, over 20% a year over the last 5 years. Likes the housing sector and home improvement.
BUY
Allan Tong’s Discover Picks Despite sector uncertainty, HD has been beating its quarters, the last four to be precise. In mid-August Home Depot reported YOY revenue popping 8.1%, earnings and revenu beats, and an 4.5% increase in same-store sales over the year. However, this last number wasn’t strong enough for Wall Street which expected 5%, so shares fell 4% on the news. There remains value in the name. Head to head with Lowe’s, HD wins in several metrics: profit margin of 10.55% vs. Lowe’s 7.41%, ROI of 36.61% vs. 24.11% and dividend yield of 2% vs. 1.55%. Read 3 Recovering Stocks to Consider for our full analysis.
SELL
HD vs. LOW He had owned HD for close to 20 years, and had done well. You don't stop doing research after buying a company. His research showed that Lowe's was catching up. Lowe's trades 5x cheaper than HD, margins are lower but expanding. See his Top Picks today.
COMMENT
Earlier this week, Home Depot's report signaled to Wall Street that DIY consumers are spending on things outside home renovations once the great reopening got rolling. That made Wall Street suspicious of all retailers and sold them off, even good ones like Walmart. Today, Lowe's (and TJX) reported strong numbers and their shares bounced.
TOP PICK
She's been adding on this pullback. Sector benefited with Covid. Growth of their PRO division is actually greater than DIY for the first time in the last few quarters. Not housing starts that drives them, but housing turnover. Housing shortage encourags renovations. Building out e-commerce, and so operating margins will improve. Yield is 2.16%. (Analysts’ price target is $343.90)
BUY
It is at a good entry point for a long term hold. Repair and renovation has been very strong. New household formations are still in the initial innings as millennials start to move out of the home.
BUY

HD vs. LOW Checked back recently with profit taking. He's not worried. Prefers HD, with its long runway for the foreseeable future, longer reach, good treatment of employees, good growth opportunities in Mexico and other places. Fix-it market is reeling a bit because of commodity prices. HD is better managed. Current pullback of 15% or so is a good time to buy. Trading at 20x earnings. Secular long-term growth story. Growth will be somewhat muted after last year's blowout.

BUY

Lowes vs. Home Depot in the reopening There's still room to run for both. Contractors have a ton of work and a shortage of supplies. Both have risen over 20% in the past 6 months. Home Depot trades at a slightly higher valuation, but is worth it and she prefers HD.

HOLD

Really benefitted from pandemic. Trading around the 50-day MA, so it's a bit oversold. People are continuing to put money into their homes, and stimulus cheques are helping. Easy money has been made. 10-11% growth rate. Neutral on the name. Other cyclicals will benefit more from reopening.

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