Increased Homeowner Interest Fails to Boost Home Depot Stock (NYSE:HD)
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 23 2025
0mins
Source: TipRanks
Home Improvement Trends: Homeowners are increasingly interested in home improvement projects, especially with the holiday season approaching, leading to a significant portion planning to shop at Home Depot for supplies.
Investor Sentiment: Despite the positive market interest, Home Depot's shares fell nearly 2% amid investor skepticism, although analysts maintain a Strong Buy consensus rating for the stock.
Orion Energy Systems Dependency: Home Depot is a crucial partner for Orion Energy Systems, with some reports suggesting that Orion's reliance on Home Depot could be seen as a double-edged sword for its business stability.
Market Outlook: Analysts predict a 16.79% upside potential for Home Depot's stock, with an average price target of $446.30 per share, despite a 3.4% decline in share price over the past year.
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Analyst Views on HD
Wall Street analysts forecast HD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HD is 401.47 USD with a low forecast of 320.00 USD and a high forecast of 441.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
23 Analyst Rating
17 Buy
5 Hold
1 Sell
Moderate Buy
Current: 382.370
Low
320.00
Averages
401.47
High
441.00
Current: 382.370
Low
320.00
Averages
401.47
High
441.00
About HD
The Home Depot, Inc. is a home improvement specialty retailer. The Company offers an assortment of building materials, home improvement products, lawn and garden products, decor products, and facilities maintenance, repair, and operations products, in stores and online. It also provides various services, including home improvement installation services, and tool and equipment rental. The Company operates approximately 2,353 retail stores, over 800 branches and more than 325 distribution centers that directly fulfill customer orders across all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. Its stores average approximately 105,000 square feet of enclosed space, with approximately 24,000 additional square feet of outside garden area. The Company serves two primary customer groups, including both do-it-yourself (DIY) and Do-It-For-Me (DIFM) customers and Professional Customers (Pros).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Surge in Layoff Plans: January 2026 saw the highest layoff plans since 2009, indicating a severe job market situation that could lead to further economic deterioration, impacting consumer confidence and spending.
- Weak Job Additions: The private sector added only 22,000 jobs, significantly lower than the 140,000 added during the same period last year, suggesting a sluggish economic recovery that may lead to decreased household income and consumer spending.
- Increase in Unemployment Claims: Initial claims for unemployment benefits unexpectedly rose to 231,000 in the last week of January, reflecting the impact of severe winter weather on the job market, potentially exacerbating economic uncertainty.
- Disconnection Between Growth and Employment: Despite GDP growth reaching an annual rate of 4.4% in Q3 last year, challenges remain for low-income households, highlighting a “K-shaped” recovery that may exacerbate social inequality.
See More
Home Retailers Face Challenges and Transformations Amid Economic Headwinds
- Weak Consumer Demand: Home improvement retailers faced significant challenges over the past year due to rising prices, job losses, and high interest rates, with foot traffic for Home Depot and Lowe's declining by 3.8% and 3.5% respectively in Q1 2025, indicating a direct impact of the economic environment on consumer spending.
- High Rates Affecting Confidence: Lowe's CEO Marvin Ellison highlighted that affordability concerns and high interest rates in the housing market have severely impacted consumer confidence, leading to reduced spending on larger discretionary items, reflecting the profound effects of economic uncertainty on the retail sector.
- AI Technology Implementation: In 2025, Lowe's rolled out AI voice agents to reduce employee distractions from phone calls on the sales floor, aiming to enhance customer service quality, although consumer preference for human interaction over AI remains a challenge, indicating the need for a balance between technology and personalized service.
- Divergent Competitive Strategies: Home Depot and Lowe's exhibit significant differences in their AI investment strategies, with the former adopting a more disciplined execution-first approach, while the latter treats AI as foundational infrastructure to rebuild its business model, aiming to enhance customer experience and employee capabilities, reflecting different paths in market adaptability.
See More
Tech Sector Rebound Fails to Offset Weekly Losses
- Nasdaq Rebound: The Nasdaq gained over 2% on Friday, yet still posted a 1.8% decline for the week, indicating ongoing investor concerns about tech stocks and the need to monitor future market trends.
- Dow Hits All-Time High: The Dow surged more than 1,200 points on Friday, closing at 50,115 with a weekly gain of 2.5%, reflecting a shift of funds from growth to value stocks, which may influence future investment strategies.
- Surge in Capital Expenditures: Alphabet announced that its capital expenditures for 2026 could exceed double the previous year, and despite a 0.5% drop in shares on Thursday, market confidence in its AI investments remains strong, signaling expectations for future growth.
- Software Stocks Crushed: Software stocks faced significant declines due to fears of AI encroaching on traditional SaaS companies, leading to pressure on the entire tech sector, prompting investors to remain vigilant about potential risks and opportunities within the industry.
See More
Jim Cramer Sells Shares of Home Depot and Honeywell
- Home Depot Trim: Jim Cramer's Charitable Trust sold 50 shares of Home Depot, reducing its holdings to 330 shares and its weighting from 3.75% to 3.25%, aiming to lock in a 7% gain since September 2024, reflecting a cautious approach amid market volatility.
- Honeywell Profit-Taking: Concurrently, 20 shares of Honeywell were sold, bringing holdings down to 390 shares and weighting from 2.45% to 2.35%, to secure approximately 30% gains after a 4% rise, demonstrating confidence in the value creation from industrial breakups.
- Market Environment Insight: Despite Home Depot facing a sluggish existing home sales market, optimism from the Trump administration's policies could make home buying more affordable, and if the 30-year mortgage rate falls below 6%, stock prices may rally further, although market sentiment fluctuations could lead to pullbacks.
- Investment Strategy Adjustment: Cramer remains optimistic about Honeywell's future, anticipating that the planned aerospace separation will unlock additional value, and while locking in some profits now, he plans to trade again as prices rise, indicating confidence in long-term investments.
See More
Dividend Growth Potential in Consumer Stocks
- Stability of REITs: Realty Income owns over 15,500 single-tenant commercial properties, with clients like Home Depot and Dollar General, and a 99% occupancy rate ensures steady cash flows, with expectations for profit and stock price increases as interest rates decline.
- Transformation Plans at Target: Target, with nearly 2,000 stores, faces inventory challenges and market pressures, yet its 54-year history of dividend growth and a $5 billion investment plan under the new CEO could help revitalize performance and attract investor interest.
- Challenges in Cleaning Products Market: Clorox, known for brands like Kingsford and Hidden Valley Ranch, has seen stock price declines due to reduced post-pandemic demand and a cyberattack, but its 4.4% dividend yield and improving business efficiencies may position it as a future growth stock.
- Attractive Dividend Yields: All three companies demonstrate strong dividend growth potential, with Realty Income's 5.3% yield, Target's 4.3%, and Clorox's 4.4%, all exceeding market averages, appealing to investors seeking stable income.
See More
Stable Dividend Opportunities in Consumer Stocks
- REIT Advantages: Realty Income owns over 15,500 single-tenant commercial properties, with clients like Home Depot and Wynn Resorts, and a high occupancy rate of nearly 99% ensures steady cash flows, enhancing its appeal as the 'monthly dividend company.'
- Dividend Growth Potential: Realty Income has paid monthly dividends since 1994, with an annual payout of $3.24 per share yielding 5.3%, significantly above the S&P 500's average of 1.1%, making it attractive even in a high-interest-rate environment.
- Retail Giant Challenges and Opportunities: Target's nearly 2,000 stores cover over 75% of U.S. consumers, and despite challenges in inventory management and market appeal, its 54 years of dividend growth history and 4.3% yield continue to attract investor interest.
- Market Potential for Cleaning Products: Clorox's annual dividend stands at $4.96 per share with a 4.4% yield, and despite facing challenges from a cyberattack and inflation, brand loyalty and an upcoming ERP implementation are expected to enhance future profitability.
See More
