Zacks Investment Research·2d ago
Home Depot (HD) Declines More Than Market: Some Information for InvestorsHome Depot (HD) closed at $284.49 in the latest trading session, marking a -1.23% move from the prior day.
The Home Depot is demonstrating a stabilizing demand environment, with revenue growth recovering to 5.7% in 2026Q2 from a -3.8% contraction in 2025Q4, suggesting the trough in home improvement demand may be passing. The company's cash generation remains robust...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth has stabilized to 5.7% in 2026Q2, with gross margin holding at 33.7%, though SG&A has risen to $8.4B, indicating rising fixed costs that may cap operating margin expansion.
Home Depot is a leading home improvement retailer with a strong market presence, bolstered by recent acquisitions and expansion into specialty trade distribution.
Recent increases in stakes by hedge funds indicate growing confidence from large investors in Home Depot.
A recovering housing market could provide stability and growth opportunities for Home Depot.
Weak consumer sentiment, a soft housing market, and rising energy costs are creating significant headwinds for Home Depot.
Recent financial results show declining revenue, margin compression, and lower comparable transactions.
Some analyses suggest HD may be overvalued, with one dividend discount model estimating fair value over 30% below the current price.
Trailing total returns as of 10/3/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 18, 2026 | $4.92+4.0% vs $4.73 | $47.9B+1.3% vs $47.2B |
Q2 2026 May 19, 2026 | $3.43+0.6% vs $3.41 | $41.8B+0.4% vs $41.6B |
Q1 2026 Feb 24, 2026 | $2.72+7.5% vs $2.53 | $38.2B+0.3% vs $38.1B |
Q4 2025 Nov 18, 2025 | $3.74-2.3% vs $3.83 | $41.4B+0.5% vs $41.2B |
Home Depot (HD) closed at $284.49 in the latest trading session, marking a -1.23% move from the prior day.
Both companies' results have been hurt by economic forces beyond their control. Home Depot's results have held up better than those of its longtime rival.
HD's digital investments, faster delivery and Pro-focused tools are driving online growth and deepening customer engagement across its retail ecosystem.
Both home improvement giants have taken a beating this year, but one stock offers retirement investors far more than a discounted price tag, and the difference comes down to where each company stands when the housing market stays frozen.
Benchmark HD against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for The Home Depot, Inc. (HD)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $282.85 | $282.03B | 19.88 | 3.24% | 8.6% | 145.54% | 3.25% | |
| $180.80 | $101.38B | 15.26 | 3.12% | 7.34% | — | — | |
| $31.09 | $16.31B | 15.09 | 4.31% | 5.87% | 35.83% | — | |
| $45.49 | $4.92B | 23.69 | 5.12% | 4.93% | 9.55% | — | |
| $56.25 | $6.05B | 14.46 | -7.38% | 0.71% | 2.46% | — | |
| $14.18 | $443.08M | 515.64 | -3.19% | 0.71% | 1.36% | — |
The Home Depot, Inc. (HD) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
The Home Depot, Inc. (HD) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 18, 2026·SEC
Aug 12, 2026·SEC
May 26, 2026·SEC
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The Home Depot, Inc. (HD) stock FAQ — growth, dividends, profitability & financials explained
The Home Depot, Inc. (HD) reported $169.18B in revenue for fiscal year 2025. This represents a 766% increase from $19.54B in 1996.
The Home Depot, Inc. (HD) grew revenue by 3.2% over the past year. Growth has been modest.
Yes, The Home Depot, Inc. (HD) is profitable, generating $14.23B in net income for fiscal year 2025 (8.6% net margin).
Yes, The Home Depot, Inc. (HD) pays a dividend with a yield of 3.25%. This makes it attractive for income-focused investors.
The Home Depot, Inc. (HD) has a return on equity (ROE) of 145.5%. This is excellent, indicating efficient use of shareholder capital.
The Home Depot, Inc. (HD) generated $15.10B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
