The Home Depot, Inc. operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also offers installation services for flooring, water heaters, bath, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, and windows. In addition, it provides tool and equipment rental services. The company primarily serves homeowners; and professional renovators/remodelers, general contractors, maintenance professionals, handymen, property managers, and building service contractors, as well as specialty tradesmen, such as electricians, plumbers, and painters. It sells its products through websites, including homedepot.com; homedepot.ca and homedepot.com.mx; blinds.com, justblinds.com, and americanblinds.com for custom window coverings; thecompanystore.com, an online site for textiles and décor products; hdsupply.com for maintenance, repair, and operations (MRO) products and related services; and The Home Depot stores. The Home Depot, Inc. was incorporated in 1978 and is headquartered in Atlanta, Georgia.

Home Depot remains a high-quality business with strong profitability, but the market is already pricing in very high expectations. With a P/E of 23.18, P/S of 1.67, P/FCF of 21.63, and especially a P/B of 23.56, the shares look noticeably more expensive than industry medians, so the upside from re-rating is limited. At the same time, over recent periods the multiples have generally declined from higher levels, which suggests some normalization in valuation, but not clear cheapness. Operational efficiency looks strong: ROE of 102.68%, ROA of 13.28%, ROI of 24.02%, while operating margin of 12.45% and net margin of 8.41% remain high relative to the industry. However, the trend in efficiency is not perfect: ROE, ROA, ROI, and margins have been gradually declining year by year, indicating pressure on earnings quality. Revenue, EBITDA, operating income, and net income are all growing in absolute terms, which supports fundamental resilience and confirms the scale of the business. On the other hand, gross margin of 33.21% is below the industry median, which limits the potential for further profitability expansion without improvements in pricing or cost structure. The balance sheet remains sensitive: a debt/equity ratio of 3.23 and long-term debt of $43.95 billion are high, while a quick ratio of 0.31 and current ratio of 1.08 point to weak short-term liquidity. The dividend yield of 0.73% looks stable, but it is not a strong driver of re-rating, although its increase versus last year is a small positive. Overall, this is the profile of a mature, profitable company with strong cash flow, but expensive valuation and a significant debt burden. For an investor, this means the fundamentals support a moderately cautious view of fair value rather than aggressive upside.

Home Depot, Inc. (The)

Сильный индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Strong index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Сильный индекс, значительно упал

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Сильный индекс, без изменений. Рынок на стороне медведей.

Strong index, flat. The market is on the bears' side.

Средний индекс, незначительно вырос. Отток средств из лонгов на высоком уровне.

Medium index, slightly up. Outflow of funds from longs at a high level.

Home Depot demonstrates strong profitability and revenue growth, but expensive valuation multiples, high debt burden, and weak liquidity limit its valuation potential.

Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Amazon.com Inc (Symbol: AMZN), where a total volume of 347,656 contracts has been traded thus far today, a contract volume which is representative of approximately 34.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 101.1% of AMZN's average daily trading volume over the past month, of 34.4 million shares. Particularly high volume was seen for the $250 strike call option expiring October 02, 2026, with 24,344 contracts trading so far today, representing approximately 2.4 million underlying shares of AMZN. Below is a chart showing AMZN's trailing twelve month trading history, with the $250 strike highlighted in orange:
Synopsys Inc (Symbol: SNPS) saw options trading volume of 18,282 contracts, representing approximately 1.8 million underlying shares or approximately 91.1% of SNPS's average daily trading volume over the past month, of 2.0 million shares. Especially high volume was seen for the $500 strike call option expiring October 02, 2026, with 2,316 contracts trading so far today, representing approximately 231,600 underlying shares of SNPS. Below is a chart showing SNPS's trailing twelve month trading history, with the $500 strike highlighted in orange:
And Home Depot Inc (Symbol: HD) options are showing a volume of 30,990 contracts thus far today. That number of contracts represents approximately 3.1 million underlying shares, working out to a sizeable 64% of HD's average daily trading volume over the past month, of 4.8 million shares. Especially high volume was seen for the $292.50 strike call option expiring October 09, 2026, with 1,119 contracts trading so far today, representing approximately 111,900 underlying shares of HD. Below is a chart showing HD's trailing twelve month trading history, with the $292.50 strike highlighted in orange:
For the various different available expirations for AMZN options, SNPS options, or HD options, visit StockOptionsChannel.com.
Further AMZN Research:

Noteworthy Thursday Option Activity: AMZN, SNPS, HD

Key Points
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.
Both companies' valuations have become less expensive.
Picking value stocks isn't easy. That's because value investing involves buying stocks that you perceive as undervalued. Companies' stock prices and valuations can fall for any number of reasons. Value investors believe the market has mispriced their prospects, which will result in appreciable gains.
Home Depot (NYSE: HD) trades at a higher share price than Lowe's Companies (NYSE: LOW), but that doesn't mean it's the better value. You'll need to compare valuations based on a common metric, like price-to-earnings (P/E) ratios, compared to their long-term growth prospects.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Home Depot vs. Lowe's
Home Depot and Lowe's both compete in the home-improvement retail space. The former is the largest company in the sector, generating about $165 billion in annual sales. That's nearly double competitor Lowe's $86 billion in sales.
Both companies have high market shares, but their sales are sensitive to macroeconomic conditions. These include home sales, interest rates, the job market, and consumer confidence. Right now, with elevated inflation, home sales and borrowing rates have been affected, and homeowners have put off major renovations.
That explains the companies' tepid sales growth. However, Home Depot seems to be doing better. The company's fiscal second-quarter (ended Aug. 2) same-store sales (comps) grew 1.7%, and its gross margin expanded from 33.4% to 33.7%. Lowe's fared worse, with comps increasing just 0.2% and gross margin contracting from 33.8% to 33%.
The investment decision
With the economic headwinds, both companies' stock prices haven't fared well lately. Home Depot's share price has lost 14.8% this year, through Sept. 25. During this time, Lowe's stock has dropped 21.5%. They trailed the S&P 500 index's 13.1% gain.
However, for patient investors willing to wait for economic conditions to improve and homeowners to undertake major renovations, the stocks offer upside since they trade at better valuations.
Home Depot's stock has a P/E ratio of 21, down from 24 at the start of the year and lower than its 10-year median of 23. Lowe's shares have a P/E multiple of 16, down from 21, which is also its 10-year median.
While both stocks trade at attractive valuations compared to their historical P/E ratios, I favor Home Depot as the better value stock compared to Lowe's. With its bigger size giving it advantages like convenience and economies of scale, it seems Home Depot will emerge stronger once better economic times arrive.
Should you buy stock in Home Depot right now?
Before you buy stock in Home Depot, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Home Depot wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $373,352!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,406,241!*
Now, it’s worth noting Stock Advisor’s total average return is 933% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 29, 2026.
Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool recommends Lowe's Companies. The Motley Fool has a disclosure policy.

Which Value Stock Is the More Obvious Buy Now: Home Depot Under $310 a Share or Lowe's Under $200 a Share?

Key Points
Nvidia's dividend may be small, but it has huge room for growth.
The tech giant's payout ratio is much lower than that of other dividend payers.
Nvidia (NASDAQ: NVDA) and the words "dividend stock" aren't normally mentioned in the same sentence, but maybe they should be. While Nvidia is normally tagged as a high-growth, artificial intelligence stock, which it is, it's also a growing dividend payer. While the dividend payout isn't as high as some others, it could rapidly expand over the next few years as Nvidia's cash flows multiply.
Buying Nvidia stock today could mean it becomes one of the bigger dividend payers in your portfolio in the future, and that's just one of a growing list of reasons to buy it.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Nvidia recently hiked its dividend
For the longest time, Nvidia's dividend was basically a joke. The annual payout was $0.04, or $0.01 per quarter. During its Q1 earnings report, Nvidia announced it would increase its dividend to $0.25 per quarter, or $1.00 per year.
With Nvidia trading at $225 as of Sept. 25, that only equates to about a 0.45% yield. Most dividend investors want a yield far higher than that, so Nvidia typically doesn't appear on high-paying dividend screeners. But that's only one part of the equation.
Dividend investors should also pay attention to the potential for dividend growth. Home Depot (NYSE: HD) is often cited as one of the top dividend-paying companies. While its yield isn't particularly high (about 3.2%), it's a robust yielder that many dividend investors center their portfolios around.
The payout ratio is a key metric that dividend investors need to track. It measures how much of its earnings a company pays out in dividends. Home Depot's dividend payout ratio is fairly high, typically above 50%. But that's still a healthy figure, far below 100%, and it indicates that Home Depot isn't stretched to pay its dividend each quarter. Nvidia's is much lower, at about 10%.
That means there's massive room for dividend growth at Nvidia, and it may continue hiking its dividend to reward shareholders. Nvidia could quintuple its payout ratio and still be just below Home Depot's dividend commitment.
So, Nvidia is not a hefty dividend payer now, but as it matures, it could become a bigger one. That makes Nvidia a dividend stock well worth considering today, as you get the benefit of a small but growing dividend and a stock with some of the best growth prospects on the planet.
There are many reasons to buy Nvidia stock, and its growing dividend is one of them.
Should you buy stock in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $383,680!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,954!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 28, 2026.
Keithen Drury has positions in Nvidia. The Motley Fool has positions in and recommends Home Depot and Nvidia. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Is Nvidia a Sleeper Dividend Giant?

Key Points
Both companies have impressive dividend histories.
Realty Income boasts a high occupancy rate at its properties.
Home Depot has the highest sales among home-improvement retailers.
Investors have concerns, including stubbornly high inflation, elevated energy prices, the Federal Reserve raising short-term interest rates, and rising longer-term U.S. Treasury yields. Still, the S&P 500 index has gained 12.5% this year, through Sept. 24.
However, during these uncertain times, investors can turn to dividend-paying stocks. Despite the market's advance this year, Realty Income (NYSE: O) and Home Depot (NYSE: HD) trade near their 52-week lows.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
But income-oriented investors should view these high-yielding stocks as a buying opportunity.
1. Realty Income
Realty Income is a real estate investment trust (REIT), a structure designed to attract dividend-seeking investors. That's because these types of companies have to pay out at least 90% of their taxable income as dividends.
The stock price closed at $55.41 on Sept. 24, after reaching its 52-week low of $55.07 earlier in the day. But that's likely partly due to higher long-term yields, which draw investors into fixed-income instruments. The yield on the 10-year U.S. Treasury note crossed 5% this month, reaching 5.18% vs. 4.79% on Sept. 1.
But Realty Income's business fundamentals remain sound. Generating most of its rental income from retail properties, its occupancy level remains high, including 98.8% as of June 30. Investors will like Realty Income's dividend yield and the stock's upside, providing an attractive total return potential.
The board of directors has raised dividends for 116 straight quarters. This includes boosting October's payout from $0.27 to $0.2715. Investors should note that Realty Income pays monthly dividends. At the new dividend rate, the stock has a 5.9% dividend yield. That's much higher than the S&P 500's 1.1% yield.
2. Home Depot
Home Depot, as the world's largest home-improvement retailer, gets affected by broad economic factors and interest rates. That's because homeowners have to feel confident when taking on major renovations, often borrowing to do so.
With consumers squeezed by high costs, they've been reluctant to take on big projects. That's reflected in Home Depot's tepid same-store sales growth, which increased 1.7% in the fiscal second quarter. This covered the period that ended on Aug. 2.
With higher borrowing costs, it's more expensive to buy a home, which will dampen renovation demand. Existing homeowners will also find borrowing costs higher when taking on large projects. Those factors helped push the share price near its 52-week low of $289.10, with the stock closing at $292.18 on Sept. 24.
Still, at some point, economic conditions will improve, interest rates will drop, and people will undergo construction work. When they do, it seems likely they'll turn to ubiquitous Home Depot stores.
In the meantime, shareholders will receive an above-market yield of 3.2%. Home Depot has also built an impressive track record of raising dividends. In fact, the company has raised payments annually since 2010. Even during the years of the Great Recession, Home Depot kept dividends flat from 2006 through 2009.
Should you buy stock in Realty Income right now?
Before you buy stock in Realty Income, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Realty Income wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $383,680!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,954!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 28, 2026.
Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot and Realty Income. The Motley Fool has a disclosure policy.

2 High-Yield Dividend Stocks Near Their 52-Week Lows That Income Investors Are Sleeping On

Home Depot (HD) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this home-improvement retailer have returned -11.2%, compared to the Zacks S&P 500 composite's +1% change. During this period, the Zacks Retail - Home Furnishings industry, which Home Depot falls in, has lost 11.8%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Home Depot is expected to post earnings of $3.87 per share for the current quarter, representing a year-over-year change of +3.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.
The consensus earnings estimate of $15 for the current fiscal year indicates a year-over-year change of +2.1%. This estimate has changed +0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $16.04 indicates a change of +6.9% from what Home Depot is expected to report a year ago. Over the past month, the estimate has changed -0.1%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Home Depot.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Home Depot, the consensus sales estimate for the current quarter of $42.72 billion indicates a year-over-year change of +3.3%. For the current and next fiscal years, $171.35 billion and $177.57 billion estimates indicate +4.1% and +3.6% changes, respectively.
Last Reported Results and Surprise History
Home Depot reported revenues of $47.86 billion in the last reported quarter, representing a year-over-year change of +5.7%. EPS of $4.92 for the same period compares with $4.68 a year ago.
Compared to the Zacks Consensus Estimate of $47.23 billion, the reported revenues represent a surprise of +1.33%. The EPS surprise was +4.46%.
Over the last four quarters, Home Depot surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Home Depot is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Home Depot. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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Is Most-Watched Stock The Home Depot, Inc. (HD) Worth Betting on Now?

Key Points
Amidst a tighter macro backdrop with elevated inflation and higher interest rates, Home Depot’s same-store sales growth has been under pressure.
The economically sensitive business will likely continue to struggle posting notable gains until the Federal Reserve loosens monetary policy.
Home Depot (NYSE: HD) operates thousands of stores in total, most in the U.S. It generated $48 billion in revenue just in the latest fiscal quarter (Q2 2026 ended Aug. 2). These figures highlight its dominance in the home improvement industry. But investors haven't been winning.
This well-known retail stock is trading 32% below its all-time high (as of Sept. 25). Although investors can buy Home Depot shares on a huge dip, there's one clear reason to avoid the company right now.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
From a fundamental perspective, Home Depot's business has been under pressure in recent years. It posted same-store sales declines in fiscal 2023 and fiscal 2024. Last fiscal year, this metric turned to a positive 0.3%. And management expects it to rise by just 1% (at the midpoint) in fiscal 2026.
The stabilization is encouraging, but the gains have been muted. This reveals just how exposed Home Depot is to the macroeconomic environment. The economy is characterized today by above-normal inflation, which has prompted the Federal Reserve to recently raise its benchmark interest rate.
That backdrop makes things difficult for Home Depot. It puts pressure on demand, as households aren't as willing to spend on major renovations and upgrades. Only when the company returns to better growth should investors even consider buying shares. This doesn't seem likely until the Kevin Warsh-led central bank can get inflation under control.
Should you buy stock in Home Depot right now?
Before you buy stock in Home Depot, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Home Depot wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $383,680!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,954!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 28, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool has a disclosure policy.

Home Depot (HD) Is 32% Below Its All-Time High: Here's 1 Reason to Avoid the Stock Right Now

Key Points
The home improvement retailer's quarterly dividend payout has soared 238% in the past 10 years.
Investors will appreciate the consistency, as the business has paid a dividend in 158 straight quarters.
Home Depot (NYSE: HD) hasn't been on the winning team. Its shares are down 29% in the past 12 months (as of Sept. 24), and they currently trade 32% off their peak from December 2024. Macro headwinds have seriously pressured the company's growth, harming investor sentiment.
However, the retail stock pays a healthy dividend that currently yields 3.19%. This can satisfy income investors, and it's more than triple the 1.05% yield that the S&P 500 index pays.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Here's the effect of that yield on a $10,000 investment.
If you simply buy an S&P 500 exchange-traded fund, that hypothetical $10,000 capital outlay would generate $105 in annualized income. Investors who are after a passive income stream aren't lining up to add the benchmark to their portfolios.
Home Depot is the better choice in this regard. That same $10,000 invested in shares of the leading home improvement company would result in $319 in yearly income. That's significantly more than what the S&P 500 index would bring in.
The massive retailer's payout has also grown. In the past decade, Home Depot has increased its quarterly dividend by 238%.
The consistency is even more impressive, however. The business has paid a dividend in 158 straight quarters. Home Depot's ability to return capital to shareholders through various economic scenarios is a wonderful trait.
Should you buy stock in Home Depot right now?
Before you buy stock in Home Depot, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Home Depot wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $383,680!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,954!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 26, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool has a disclosure policy.

Home Depot Yields More Than 3x the S&P 500. Here's the Effect on a $10,000 Investment.

The Home Depot, Inc. HD is leaning harder on professional customers as housing affordability and low turnover continue to suppress larger remodeling projects. That strategy is helping the retailer grow even without a broad housing recovery.
The question is how far Pro momentum can carry the business. Second-quarter fiscal 2026 results show meaningful support from SRS, specialty distribution and cross-selling, but softer traffic and restrained big-ticket demand remain clear limits.
Pro Investments Are Broadening HD's Growth Base
Home Depot's Pro business posted positive comparable sales in the second quarter and outperformed DIY, with gains across all Pro cohorts. Pro-focused categories including decking, dimensional lumber, pipe and fittings, fasteners, hand tools and concrete also grew. Big-ticket transactions above $1,000 increased 2.4% year over year, improving from 0.8% growth in the first quarter.
SRS is becoming a larger piece of that effort. It posted comparable sales above the company average and positive comps across all verticals, while management expects mid-single-digit organic sales growth in fiscal 2026. The Mingledorff's acquisition added HVAC as a fifth SRS operating line, and the GMS platform broadened the product catalog available to professional customers.
Cross-Selling and Delivery Add More Pro Reach
Integration is creating more selling opportunities across Home Depot's network. Over the 12 months through the second quarter, 90% of stores closed at least one SRS sale through QuoteCenter. The combined offering generated incremental sales from homebuilders, commercial customers and remodelers.
Home Depot plans to add 40-50 SRS branches in fiscal 2026 alongside about 15 new retail stores. Digital execution is helping support the broader model as well. Online sales rose 11% in the second quarter, marking a fifth consecutive quarter of double-digit growth, while faster parcel and big-and-bulky delivery improved service levels for both DIY and Pro customers.
The Home Depot, Inc. Price, Consensus and EPS Surprise
Housing Weakness Still Caps the Upside
The housing backdrop remains the central constraint. Comparable customer transactions declined 1% year over year in the second quarter, while comparable average ticket increased 2.8%. Management said housing turnover has remained at historically low levels for four years, with no sign of an inflection point, and customers continue to favor smaller repair and maintenance projects.
That pressure is visible across the industry. Lowe's Companies, Inc. LOW reported a 0.2% comparable-sales increase in its second quarter, driven by Pro, home services and online growth but partly offset by persistent discretionary DIY pressure. Builders FirstSource, Inc. BLDR reported an 8.8% decline in second-quarter net sales, citing a lower housing-starts environment and related headwinds.
Can Pro Expansion Offset the Frozen Market?
Home Depot's Pro expansion is cushioning the housing slowdown, but current results do not show that it can fully replace demand lost to weak turnover and muted large-project activity. The company still delivered 5.7% sales growth and a 1.7% comparable-sales increase in the second quarter, then reaffirmed fiscal 2026 guidance for total sales growth of 2.5-4.5% and comparable sales ranging from flat to 2%.
The stock currently carries a Zacks Rank #3 (Hold). It also has a VGM Score of B, Growth Score of B and Momentum Score of A, while its Value Score of C is less favorable. The Style Scores point to better growth and momentum characteristics than value, while the Zacks Rank keeps the near-term setup balanced. For now, Pro gains, specialty distribution and cross-selling provide support, but a broader housing recovery would still be important for a stronger return of large discretionary projects.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Can Home Depot's Pro Expansion Offset Today's Frozen Housing Market?

The Home Depot, Inc. HD is showing better operating momentum even as the housing backdrop remains difficult. Fiscal second-quarter 2026 sales rose 5.7% year over year to $47.86 billion, while comparable sales increased 1.7%. Adjusted earnings advanced 5.1% to $4.92 per share.
The tension is clear. Pro demand and digital engagement are improving, but customers remain cautious on larger discretionary projects as affordability and low housing turnover constrain renovation activity.
Pro Investments Keep Growth Moving
Home Depot’s Pro business posted positive comparable sales in the second quarter and outperformed DIY, with gains across all Pro cohorts. Pro-heavy categories such as decking, dimensional lumber, pipe and fittings, fasteners, hand tools and concrete also grew. Big-ticket transactions above $1,000 increased 2.4%, improving from 0.8% growth in the first quarter.
SRS is broadening that opportunity. It posted positive comparable sales across all verticals and management expects mid-single-digit organic sales growth for fiscal 2026. The Mingledorff’s acquisition added HVAC as a fifth SRS operating line, while integration with GMS expands the product catalog available to larger professional customers. Over the 12 months through the second quarter, 90% of Home Depot stores closed at least one SRS sale through QuoteCenter.
Digital execution is adding another layer. Online sales increased 11% year over year, marking a fifth straight quarter of double-digit growth. More than 65% of stocked parcel deliveries now arrive the same day or next day, while about 55% of stocked big-and-bulky deliveries arrive within two days.
The Home Depot, Inc. Price, Consensus and EPS Surprise
Housing Headwinds Still Cap Big Projects
Traffic remains a weak point. Comparable customer transactions declined 1% in the second quarter, while comparable average ticket increased 2.8%. That mix shows sales growth is still relying more on spending per visit than on more customer trips.
Larger discretionary projects also remain constrained. Management cited housing affordability and historically low turnover as ongoing drags, with customers favoring smaller repair and maintenance work. Home Depot reaffirmed fiscal 2026 comparable-sales guidance of flat to 2% growth and total sales growth of 2.5-4.5%.
Margins offer limited cushion. Adjusted operating margin slipped 10 basis points in the quarter, and fiscal 2026 guidance calls for an adjusted operating margin of 12.8-13%. The company expects tariff refunds received in the second quarter to be offset by higher fuel, energy and other product input costs over the year.
Peers Face the Same Split Demand
Lowe’s Companies, Inc. LOW is seeing a similar divide. Its second-quarter 2026 comparable sales increased 0.2%, supported by Pro, home services and online growth, while the company cited persistent pressure on discretionary DIY spending.
Builders FirstSource, Inc. BLDR, which is more directly tied to professional construction activity, reported an 8.8% second-quarter sales decline as a lower housing-starts environment weighed on demand. That contrast underscores why Home Depot’s Pro share gains matter, but also why the broader housing cycle remains a meaningful constraint.
What the Zacks Signals Say About HD
HD currently carries a Zacks Rank #3 (Hold). The stock also has a VGM Score of B, Growth Score of B, Momentum Score of A and Value Score of C. The stronger Growth and Momentum readings indicate favorable characteristics in those styles, while the Value Score is more middle-of-the-pack.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Rank is the more important near-term signal. HD trades at 18.9X forward 12-month earnings, above the Zacks sub-industry’s 17.5X but below the S&P 500’s 19.8X. A Zacks Rank #3 supports a measured stance rather than a clear fresh-buy signal. Home Depot’s Pro ecosystem, SRS expansion and digital gains provide identifiable growth drivers, but soft traffic, muted big-ticket demand and limited margin expansion leave the near-term investment case balanced.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Is HD Stock Worth Buying as Pro Growth Battles Housing Headwinds?

The Home Depot, Inc. HD shares have fallen 11.4% in the past four weeks, extending a 15.4% decline over the past 12 weeks. The retreat has brought the stock closer to the lower end of its recent valuation range.
The pullback improves the entry price, but the operating backdrop remains uneven. Pro demand, digital growth and broader category strength support the business, while soft traffic, weak housing turnover and cost pressure continue to limit near-term upside.
HD’s Pullback Brings Valuation Closer to Historical Norm
Home Depot trades at 18.93X forward 12-month earnings, below its five-year median of 22.09X and the S&P 500’s 19.84X multiple. The stock remains above the Zacks sub-industry’s 17.46X multiple, so the recent decline has not made HD unusually cheap relative to peers.
Image Source: Zacks Investment Research
Shares are also down 27.6% over the past year and 13.8% year to date. That weakness has reset expectations, but the valuation still leaves room for further pressure if earnings growth or the housing backdrop disappoints.
HD Fundamentals Show Resilience Despite Soft Traffic
Second-quarter fiscal 2026 sales increased 5.7% year over year to $47.86 billion, while comparable sales rose 1.7%. Adjusted earnings increased 5.1% to $4.92 per share and topped the Zacks Consensus Estimate of $4.71.
The mix was less convincing beneath the headline growth. Comparable customer transactions declined 1%, while comparable average ticket increased 2.8%. Still, 13 of 16 merchandising departments posted positive comps, digital sales rose 11%, and Pro posted positive comps while outperforming DIY. Management expects total sales growth of 2.5-4.5% and comparable sales growth of flat to 2% for fiscal 2026.
Housing and Cost Pressures Keep the Risk Case Intact
Larger discretionary projects remain constrained by housing affordability and low turnover. Management said housing turnover has remained at historically low levels for four years, with no clear inflection point. That keeps demand tilted toward smaller repair and maintenance projects.
Margins also face pressure. Second-quarter gross margin benefited from a $685 million tariff refund, but higher fuel, energy and other product input costs are expected to offset that benefit over the year. Adjusted operating margin slipped 10 basis points to 14.7%, and fiscal 2026 adjusted operating margin is projected at 12.8-13%.
Peer Results Reinforce a Mixed Home-Improvement Backdrop
Lowe’s Companies, Inc. LOW reported a 0.2% comparable-sales increase in its fiscal second quarter, supported by Pro, home services and online growth, while persistent DIY macro pressure remained a drag. The company also reduced its full-year comparable-sales outlook to flat.
Builders FirstSource, Inc. BLDR faced a tougher housing environment. Second-quarter net sales fell 8.8% year over year, with the company citing lower housing starts and related headwinds. The contrast shows that repair-oriented demand can remain steadier than new-construction activity, but neither backdrop points to a broad housing recovery.
HD’s Signals Favor Patience After the Pullback
The 11.4% monthly decline has made Home Depot less expensive, while Pro momentum, digital growth and steady cash generation support the longer-term case. Yet soft traffic, constrained big-ticket demand and limited margin expansion keep the risk-reward balance from becoming clearly favorable on price weakness alone.
The Home Depot, Inc. Price, Consensus and EPS Surprise
HD currently carries a Zacks Rank #3 (Hold). It also has a VGM Score of B, Growth Score of B and Momentum Score of A, while its Value Score of C is less favorable. The combination points to solid growth and momentum characteristics, but the Zacks Rank suggests investors may prefer to wait for clearer earnings-estimate support before treating the pullback as a stronger buying signal.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report