Stock Price & Analysis

Based on the provided data and recent market activity, here's a comprehensive analysis of Home Depot (HD) stock:

Technical Analysis

The stock is showing bearish momentum in the short term, with the price declining from $396.4 to $385.3 on February 21, 2025, representing a -2.37% drop. The stock has formed a bearish pattern with increasing selling pressure.

Fundamental Analysis

Key financial metrics show:

• Revenue: $152.67B
• Net Income: $15.14B
• Net Margin: 9.92%
• ROE: 1162.16%
• Current Ratio: 1.35

Valuation metrics indicate:

• P/E: 23.51x
• EV/EBITDA: 15.80x
• P/S: 2.33x
• Dividend Yield: 2.35%

Recent Business Performance & Outlook

According to recent reports, Home Depot has been facing challenges due to:

• High interest rates affecting the real estate market
• Slower consumer spending on big-ticket items
• Reduced home sales activity

However, positive factors include:

• Market cap of $408.8B
• YTD performance of +6.4% in 2025, outperforming S&P 500's 3.1%
• Strong analyst consensus with 26 "Strong Buy" ratings out of 36 analysts

Business Segments

The company's revenue distribution:

• Building Materials: 37.36%
• Décor: 32.94%
• Hardlines: 29.70%

Recommendation

SELL. The current technical indicators suggest bearish momentum, with the stock trading below key support levels. While fundamentals remain solid and analyst sentiment is positive, the near-term headwinds from high interest rates and housing market slowdown could continue to pressure the stock. The current price of $385.3 is approaching the fibonacci support level of $381.08, and breaking below this could trigger further selling.

Based on the provided data and recent market analysis, here's the price prediction for Home Depot (HD) stock in 2025:

Technical Analysis:

• Current price is at $385.44, showing a bearish trend with recent decline of -2.37% in the last trading session
• Key resistance levels at $415.18 (Fibonacci R1) and support at $389.12 (Fibonacci S1)
• RSI-14 at 33.65 indicates oversold conditions, suggesting potential bounce
• MACD showing bearish momentum with -2.82 and negative histogram

Fundamental Drivers:

• Housing market conditions improving with interest rate cuts implemented in September 2024
• Management raised FY2024 revenue outlook to 4% increase from previous 2.5%
• Recent $18 billion acquisition of SRS Distribution expands addressable market by $50 billion
• Strong dividend yield of 2.35% and PE ratio of 23.51 showing reasonable valuation

Price Target 2025: $434.44 (Street consensus)

• Represents 12.7% upside from current price
• Supported by 26 "Strong Buy" ratings out of 36 analysts
• Street-high target at $500 suggests 20.8% upside potential
• Base case supported by improving housing market and strategic initiatives

The S1 support level for HD Stock is $383.52 ,The R1 resistant level for HD Stock is $413.93.

As of the end of day on 2025-02-26, the price of HD Stock was $394.99.

The target price for HD Stock according to analyst rating is 451.09, with the highest price target at 475.00 and the lowest at 420.00. Analysts have a Strong Buy rating on HD Stock overall.

The market cap of HD is $390.7B.

Based on the provided data and recent market activity, here's a comprehensive analysis of Home Depot's valuation:

Current Market Position

Valuation Analysis

Technical and Fundamental Assessment:

• HD is currently showing signs of being overvalued based on several key metrics:
• P/E ratio has expanded to 23.51x, significantly higher than its historical average
• EV/EBITDA at 15.80x indicates premium valuation compared to historical levels
• Price-to-Sales ratio at 2.33x suggests rich valuation relative to historical norms

Growth Concerns:

• Revenue growth has slowed, with FY2024 showing a decline to $152.67B from $157.40B in FY2023
• Net income decreased from $17.1B to $15.1B year-over-year
• Gross margins have contracted to 31.63% from 31.97%

Market Headwinds:

• Higher interest rates and macroeconomic uncertainty are pressuring consumer demand
• Housing market challenges with turnover at 30-year lows affecting home improvement spending
• Softness in spring projects due to extreme weather changes impacting performance

Competitive Position:

• Despite challenges, HD maintains market leadership with over 2,300 stores
• Recent SRS Distribution acquisition expands addressable market by $50B
• Strong return on invested capital (ROIC) continues to exceed 15% threshold

Conclusion: Based on current valuation metrics, slowing growth, and market headwinds, HD appears overvalued at current levels. The combination of rich multiples and deteriorating fundamentals suggests limited upside potential in the near term.

The Home Depot, Inc. is a home improvement retailer. The Company offers a wide assortment of building materials, home improvement products, lawn and garden products, decor products, and facilities maintenance, repair, and operations products. It also provides various services, including home improvement installation services and tool and equipment rental. The Company operates approximately 2,335 stores located throughout the United States including the Commonwealth of Puerto Rico and the territories of the U.S. Virgin Islands and Guam, Canada, and Mexico. The Home Depot stores average approximately 104,000 square feet of enclosed space, with approximately 24,000 additional square feet of outside garden area. It also maintains a network of distribution and fulfillment centers, as well as various e-commerce websites in the United States, Canada, and Mexico. The Company serves two primary customer groups: do-it-yourself (DIY) Customers and Professional Customers (Pros).

Based on the available data and market analysis, here is a detailed price prediction for Home Depot (HD) stock through 2030:

Current Market Position

Short-Term Outlook (2025)

• According to recent forecasts, HD is expected to reach $399-410 by end of 2025, representing a modest 3-6% increase from current levels
• The stock shows some near-term technical weakness with RSI at 33.65 indicating oversold conditions
• Support levels exist around $383-385 with resistance around $415-420 range

Medium-Term Projection (2026-2027)

• Price targets suggest HD could reach $468-500 by end of 2026-2027
• This represents approximately 20-30% upside from current levels
• Growth drivers include:
  • Housing market recovery as interest rates normalize
  • Aging housing stock requiring increased maintenance
  • Strong operational efficiency improvements

Long-Term Forecast (2030)

• Multiple analysts project HD stock could reach $700-745 by 2030
• Key growth catalysts include:
  • Expanding addressable market expected to reach $621 billion by 2025
  • Digital transformation and omnichannel capabilities
  • Professional customer segment growth
  • Market share gains from smaller competitors

Risk Factors

• Interest rate environment impact on housing market
• Economic recession risks
• Competition from online retailers
• Supply chain disruptions
• Labor cost pressures

Conclusion The consensus view suggests HD stock has strong potential for long-term appreciation, with projections indicating roughly 80-100% upside by 2030 from current levels. The company's dominant market position, operational excellence, and favorable industry tailwinds support this outlook.

HD has a total of 463100 employees.