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, Inc. (The)

Key Points
Realty Income supports its dividend by leasing single-tenant properties, often to well-known clients.
Its monthly dividend has risen at least one time per year since 1994.
Investors are right to be leery of stocks with high dividend yields. Although such returns appear attractive on the surface, investors have to remember that dividend stocks that are not real estate investment trusts (REITs) can adjust dividend payments at any time. Moreover, REITs have the same freedom as long as they pay out at least 90% of their net income in dividends.
This fact may leave investors wondering what to do about a REIT called Realty Income (NYSE: O), a popular stock on the Robinhood Markets platform. Known for paying a monthly dividend, its 5% dividend yield is more than quadruple the S&P 500 average of 1.2%. Does that high return make the payout too good to be true? Let's take a closer look.
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The state of Realty Income and its payout
Realty Income owns more than 15,500 single-tenant, net-leased properties. Under the terms of these contracts, the tenant pays for insurance, property taxes, and maintenance, ensuring a steady income for the landlord.
Furthermore, occupancy is just under 99%, meaning the company is always looking to acquire or develop additional properties. Also, since its tenant list includes companies like Home Depot, Dollar General, and Tractor Supply, it boasts a steady client base.
That property portfolio funds a $3.24 per share annual dividend, and its monthly payout has risen at least once per year since its inception in 1994. That streak sets an expectation of periodic dividend hikes, and it could undermine confidence in the stock if its payout did not rise at least one time per year.
For that reason, Realty Income is unlikely to slash its dividend unless it cannot afford to sustain it. Fortunately, dividend affordability does not appear to be an issue for this company.
In the third quarter of 2025, it earned $4.20 per share in funds from operations income, a measure of a REIT's free cash flow. That cash allows Realty Income to cover the $3.24 per share in dividends and leaves some cash available for other purposes.
Investors should also note that lower stock prices boost dividend yields. Hence, the fact that Realty Income stock trades at a discount of over 20% from the all-time high has contributed to the higher dividend returns.
Moreover, the Fed has cut interest rates in recent months. That should lower credit costs, making more real estate deals profitable. Thus, as profits rise, the stock should also increase, possibly making Realty Income one of the smartest dividend stocks to buy.
Realty Income offers a sustainable dividend
Ultimately, Realty Income can afford to sustain its dividend despite its 5% yield.
Indeed, investors should turn cautious when they see such yields, and just because a stock is popular on Robinhood does not mean investors should buy it.
Fortunately, Realty Income's FFO income far exceeds the cost of its dividend. Additionally, the REIT offers shareholders a stable tenant base, a high occupancy rate, and continued expansion. Hence, its investors should benefit from a high-yielding, rising dividend and, over time, a higher stock price fueled by lower interest rates.
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 $414,554!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,120,663!*
Now, it’s worth noting Stock Advisor’s total average return is 884% — a market-crushing outperformance compared to 193% 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 February 14, 2026.
Will Healy has positions in Realty Income. The Motley Fool has positions in and recommends Home Depot, Realty Income, and Tractor Supply. The Motley Fool recommends the following options: short April 2026 $55 calls on Tractor Supply. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This Robinhood Stock Has a Trailing 5% Dividend Yield -- Is It Too Good to Be True?

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Etsy Inc (Symbol: ETSY), where a total volume of 14,890 contracts has been traded thus far today, a contract volume which is representative of approximately 1.5 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 40.9% of ETSY's average daily trading volume over the past month, of 3.6 million shares. Especially high volume was seen for the $50 strike call option expiring June 18, 2026, with 3,037 contracts trading so far today, representing approximately 303,700 underlying shares of ETSY. Below is a chart showing ETSY's trailing twelve month trading history, with the $50 strike highlighted in orange:
Home Depot Inc (Symbol: HD) options are showing a volume of 16,948 contracts thus far today. That number of contracts represents approximately 1.7 million underlying shares, working out to a sizeable 40.4% of HD's average daily trading volume over the past month, of 4.2 million shares. Especially high volume was seen for the $405 strike call option expiring February 13, 2026, with 1,594 contracts trading so far today, representing approximately 159,400 underlying shares of HD. Below is a chart showing HD's trailing twelve month trading history, with the $405 strike highlighted in orange:
And BXP Inc (Symbol: BXP) saw options trading volume of 9,538 contracts, representing approximately 953,800 underlying shares or approximately 40.2% of BXP's average daily trading volume over the past month, of 2.4 million shares. Particularly high volume was seen for the $60 strike put option expiring April 17, 2026, with 4,202 contracts trading so far today, representing approximately 420,200 underlying shares of BXP. Below is a chart showing BXP's trailing twelve month trading history, with the $60 strike highlighted in orange:
For the various different available expirations for ETSY options, HD options, or BXP options, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Thursday Option Activity: ETSY, HD, BXP

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $219.0 million dollar outflow -- that's a 2.8% decrease week over week (from 131,950,000 to 128,250,000). Among the largest underlying components of SSO, in trading today Home Depot Inc (Symbol: HD) is up about 1%, Procter & Gamble Company (Symbol: PG) is up about 0.9%, and Chevron Corporation (Symbol: CVX) is lower by about 0.6%. For a complete list of holdings, visit the SSO Holdings page » The chart below shows the one year price performance of SSO, versus its 200 day moving average:
Looking at the chart above, SSO's low point in its 52 week range is $30.42 per share, with $60.37 as the 52 week high point — that compares with a last trade of $59.35. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Also see:
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STZ MACD
Funds Holding ARW
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable ETF Outflow Detected - SSO, HD, PG, CVX

Key Points
Wall Street says the information technology and consumer discretionary sectors will beat the S&P 500 in the next year.
The Vanguard Information Technology ETF provides heavy exposure to Nvidia, Apple, and Microsoft.
The Vanguard Consumer Discretionary provides heavy exposure to Amazon, Tesla, and Home Depot.
The median forecast among Wall Street analysts says the benchmark S&P 500 (SNPINDEX: ^GSPC) will advance 18% to 8,200 in the next year, according to FactSet Research.
As of February 10, only two stock market sectors are projected to outperform the S&P 500 during that period. The information technology and consumer discretionary sectors will add 33% and 22%, respectively, according to the median target prices set by analysts.
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Investors can get exposure to those sectors with the Vanguard Information Technology ETF (NYSEMKT: VGT) and the Vanguard Consumer Discretionary ETF (NYSEMKT: VCR). Here are the important details.
Vanguard Information Technology ETF: 33% upside implied by the median target price
The Vanguard Information Technology ETF tracks 320 stocks in the information technology sector, which includes three major segments: software and cloud services, technology hardware and equipment, and semiconductors and semiconductor manufacturing equipment. The top 10 holdings in the index fund are listed by weight below:
Nvidia: 17.4%
Apple: 14.9%
Microsoft: 12.1%
Broadcom: 4.4%
Palantir Technologies: 1.9%
Advanced Micro Devices: 1.7%
Oracle: 1.6%
Micron Technology: 1.6%
Cisco Systems: 1.5%
IBM: 1.3%
What could go wrong? Technology stocks often perform worse than the S&P 500 during drawdowns. The Vanguard Information Technology ETF underperformed the S&P 500 by 8 percentage points during the last market correction, and it underperformed by 9 percentage points during the last bear market.
Nevertheless, information technology was the best-performing market sector during the last decade. The Vanguard Information Technology ETF achieved a total return of 776% during that period, equivalent to 24% annually.
Here's the big picture: This Vanguard index fund has a relatively cheap expense ratio of 0.09%, and it's likely to perform well as artificial intelligence spending increases in the years ahead. Also, the current valuation of 39 times earnings is reasonable when Wall Street analysts expect technology companies in aggregate to report earnings growth of 24% annually through 2027.
Vanguard Consumer Discretionary ETF: 22% upside implied by the median target price
The Vanguard Consumer Discretionary ETF tracks 288 stocks in the consumer discretionary sector, which includes two segments: manufacturing and services. The manufacturing segment covers apparel, automotive, household, leisure, and textile products; the services segment covers hotels, restaurants, and retailers. The top 10 holdings in the index fund are listed by weight below:
Amazon: 21.1%
Tesla: 18.1%
Home Depot: 4.6%
McDonald's 3.2%
Booking Holdings: 2.6%
TJX Companies: 2.5%
Lowe's Companies: 1.8%
Starbucks: 1.4%
MercadoLibre: 1.3%
DoorDash: 1.3%
What could go wrong? Consumer discretionary stocks often perform worse than the S&P 500 during market drawdowns. The Vanguard Consumer Discretionary ETF underperformed the S&P 500 by 5 percentage points during the last market correction, and it underperformed by 7 percentage points during the last bear market.
Nevertheless, consumer discretionary was the fourth-best performing market sector during the last decade. The Vanguard Consumer Discretionary ETF achieved a total return of 311% during that period, equivalent to 15% annually.
Here's the big picture: This Vanguard index fund has a relatively cheap expensive ratio of 0.09%, and it's likely to perform well so long as the economy remains healthy. Also, the current valuation of 29 times earnings is tolerable when Wall Street anticipates consumer discretionary companies in aggregate will report earnings growth of 12% annually through 2027.
Investors need to manage concentration risk
The index funds discussed are very concentrated. Three stocks in the Vanguard Information Technology ETF (Nvidia, Apple, and Microsoft) account for 44% of its performance. Similarly, three stocks in the Vanguard Consumer Discretionary ETF (Amazon, Tesla, and Home Depot) account for 43% of its performance.
Investors with large positions in either fund should consider diversifying their portfolios. One strategy would be to purchase index funds that track the financials, industrials, and/or communications services sectors, all of which performed well during the last decade. A more defensive strategy would be to buy index funds that track the consumer staples, healthcare, and/or utilities sectors, which tend to outperform during economic slowdowns.
Should you buy stock in Vanguard Information Technology ETF right now?
Before you buy stock in Vanguard Information Technology ETF, 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 Vanguard Information Technology ETF 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 $443,353!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,789!*
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*Stock Advisor returns as of February 12, 2026.
Trevor Jennewine has positions in Amazon, MercadoLibre, Nvidia, and Tesla. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Apple, Booking Holdings, Cisco Systems, DoorDash, FactSet Research Systems, Home Depot, International Business Machines, MercadoLibre, Micron Technology, Microsoft, Nvidia, Oracle, Starbucks, TJX Companies, and Tesla. The Motley Fool recommends Broadcom and Lowe's Companies. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Buy 2 Vanguard Index Funds to Beat the S&P 500 in the Next Year, According to Wall Street

Key Points
The stock continues to receive support due to its deep value characteristics.
A turnaround has been a long time coming, but the current CEO has the right background to engineer it.
Advance Auto Parts (NYSE: AAP) will release its fourth-quarter earnings in a couple of days, and investors appear to be getting excited ahead of them. The stock rose another 5.4% today, and is up a remarkable 51.9% in 2026 alone.
Advance Auto Parts, a deep value stock for 2026
I discussed the stock earlier this year and highlighted its deep value opportunity it which still exists today. Simply put, the company's operational metrics are so far behind peers like O'Reilly Automotive and AutoZone that all it will take is an improvement to something like their levels, and its stock price will soar.
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It's a compelling case, but it's been so for over a decade, and previous management teams and activist investors have failed to deliver. That said, CEO Shane O'Kelly's fundamental restructuring is the most comprehensive attempt to date, and he deserves the benefit of the doubt. As the ex CEO of HD Supply (Home Depot's industrial distributor of products to professional facilities managers) O'Kelly clearly has extensive experience in managing vast amounts of the right stock-keeping units (SKUs) being delivered to customers on time.
In essence, that's the key to the auto parts retailing business, and unfortunately, Advance Auto doesn't have a great track record of doing it.
O'Kelly's turnaround
All of that said, his aggressive closure of over 700 locations, opening of new stores in geographic areas where the company leads the market, and focus on opening larger market hub stores , which will help make more SKUs available to customers and improve same-day delivery to customers, makes sense.
Investors will be hoping the forthcoming results reveal some improvement in profit margins and positive guidance for 2026. With auto parts companies like 3M talking about a weak aftermarket, and a paint company (aftermarket coatings) like RPM International recently reporting weak sales, investors can't expect much help from Advance's end markets. //www.rpminc.com/media/6890/q2-26-rpm-earnings-release-final-010826.pdf
With the bar set pretty low, Advance could probably report weak sales growth, but if margins and cash flow guidance signal progress, the stock could respond well to its upcoming results.
Should you buy stock in Advance Auto Parts right now?
Before you buy stock in Advance Auto Parts, 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 Advance Auto Parts 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 $443,353!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,789!*
Now, it’s worth noting Stock Advisor’s total average return is 920% — a market-crushing outperformance compared to 196% 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 February 11, 2026.
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends 3M and Home Depot. The Motley Fool recommends RPM International. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Here's Why Advance Auto Parts (Up 52% in 2026) Popped Higher Again Today

Home Depot (HD) closed at $389.68 in the latest trading session, marking a +2.28% move from the prior day. This move outpaced the S&P 500's daily loss of 0.33%. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq lost 0.59%.
The stock of home-improvement retailer has risen by 1.62% in the past month, leading the Retail-Wholesale sector's loss of 3.93% and the S&P 500's loss of 0%.
Investors will be eagerly watching for the performance of Home Depot in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 24, 2026. The company is expected to report EPS of $2.51, down 19.81% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $38.25 billion, indicating a 3.67% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.5 per share and a revenue of $164.69 billion, indicating changes of -4.86% and +3.25%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Home Depot. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. Home Depot is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Home Depot is currently being traded at a Forward P/E ratio of 25.16. This valuation marks a premium compared to its industry average Forward P/E of 21.3.
We can additionally observe that HD currently boasts a PEG ratio of 13.6. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Retail - Home Furnishings industry stood at 2.09 at the close of the market yesterday.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 203, placing it within the bottom 18% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Home Depot (HD) Increases Despite Market Slip: Here's What You Need to Know

Investors in Home Depot Inc (Symbol: HD) saw new options begin trading today, for the March 27th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the HD options chain for the new March 27th contracts and identified one put and one call contract of particular interest.
The put contract at the $380.00 strike price has a current bid of $11.80. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $380.00, but will also collect the premium, putting the cost basis of the shares at $368.20 (before broker commissions). To an investor already interested in purchasing shares of HD, that could represent an attractive alternative to paying $386.17/share today.
Because the $380.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 59%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 3.11% return on the cash commitment, or 22.69% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Home Depot Inc, and highlighting in green where the $380.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $390.00 strike price has a current bid of $11.85. If an investor was to purchase shares of HD stock at the current price level of $386.17/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $390.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 4.06% if the stock gets called away at the March 27th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if HD shares really soar, which is why looking at the trailing twelve month trading history for Home Depot Inc, as well as studying the business fundamentals becomes important. Below is a chart showing HD's trailing twelve month trading history, with the $390.00 strike highlighted in red:
Considering the fact that the $390.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 51%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 3.07% boost of extra return to the investor, or 22.42% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 30%, while the implied volatility in the call contract example is 26%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $386.17) to be 24%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

HD March 27th Options Begin Trading

For Immediate Release
Chicago, IL – February 5, 2026 – Zacks Equity Research shares Callaway Golf Co. CALY as the Bull of the Day and Albany International Corp. AIN as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Home Depot, Inc. HD, Floor & Decor Holdings, Inc. FND and Lowe's Companies, Inc. LOW.
Here is a synopsis of all five stocks:
Callaway Golf Co., a Zacks Rank #1 (Strong Buy), designs, manufactures, and sells golf equipment, apparel, and other related accessories in the US and internationally. Callaway has been the #1 equipment club sales company in recent years in the US and is the #2 ball brand behind Titleist.
The stock recently broke out to a 52-week high on increasing volume. Shares continue to display relative strength as buying pressure accumulates in this market leader.
Callaway is part of the Zacks Leisure and Recreation Products industry group, which currently ranks in the top 36% out of approximately 250 Zacks Ranked Industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform the market over the next 3 to 6 months.
Take note of the favorable characteristics for this group below. Stocks in this industry are relatively undervalued based on traditional valuation metrics. They are also projected to experience above-average earnings growth, which signifies a powerful combination that should lead to higher prices in the future.
Historical research studies suggest that approximately half of a stock's price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.
It's no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, we can dramatically improve our stock-picking success.
Company Description
Back in 2006, Callaway recognized Topgolf's potential early and invested in the company that was transforming driving ranges into competitive gameplay destinations. Callaway eventually controlled as much as 14% of Topgolf before the two entities completed a full merger back in October 2020. The Topgolf brand boasts nearly 100 locations across the US along with 4 international venues.
Just recently, Callaway sold a majority stake of 60% in its Topgolf and Toptracer businesses to private equity funds in a deal valued at $1.1 billion. Callaway received about $800 million in cash proceeds after adjustments and transaction expenses, and as part of the deal, the company repaid $1 billion in outstanding debt and also authorized the repurchase of up to $200 million in common stock.
The deal reduced leverage for Callaway while still allowing potential future value creation through its retained stake in Topgolf. This transformation is enabling Callaway to reaffirm its position as a leading pure-play golf business. Callaway plans to put part of the proceeds back into its equipment and apparel businesses.
Earlier this month, Callaway introduced its new set of Quantum drivers, fairway woods, irons and hybrids, engineered with groundbreaking technologies. Its Odyssey putters and Travis Mathew apparel are also under the Callaway brand. The company sells its products through golf retailers, sporting goods retailers, department stores, as well as directly to consumers through its retail stores and websites.
Earnings Trends and Future Estimates
Callaway has shown a consistent ability to deliver positive earnings surprises; the leading golf company surpassed the earnings mark in each of the past 11 quarters. Callaway delivered a trailing four-quarter average surprise of nearly 300%, reflecting strong execution.
This track record aligns perfectly with the power of the Zacks Rank system, which prioritizes stocks showing upward earnings revisions.
The California-based company has been the beneficiary of improving earnings estimate revisions as of late. Looking into fiscal 2026, analysts have raised their annual EPS estimates by 250% in the past 60 days. The Zacks Consensus Estimate now stands at 27 cents per share, reflecting nearly 260% growth relative to the prior year.
Let's Get Technical
Callaway's stock performance is reflective of the fundamental story, as shares have surged to a series of 52-week highs. The stock went from lows of around $5 last year to over $15 per share here in January 2026. It's quite rare to have a penny stock begin to reach these levels and signals that higher prices are likely ahead.
Only stocks that are in extremely powerful uptrends are able to make this type of price move and widely outperform the market. This is the kind of stock we want to include in our portfolio – one that is trending well and receiving positive earnings estimate revisions.
Notice how shares remain above upward-sloping 50-day (blue line) and 200-day (red line) moving averages. The stock has advanced more than 70% over the past six months, and momentum appears to be continuing this year. With both strong fundamentals and technicals, CALY stock is poised to continue its outperformance.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we know, Callaway has recently witnessed positive revisions. As long as this trend remains intact (and CALY continues to deliver earnings beats), the stock will likely continue its bullish run throughout this year.
Bottom Line
Backed by a leading industry group and robust history of earnings beats, it's not difficult to see why this company is a compelling investment. Currently, CALY carries a Zacks Rank #1 (Strong Buy), driven by favorable estimate momentum.
Solid institutional buying should continue to provide a tailwind for the stock price. Robust fundamentals combined with a strong technical trend certainly justify adding shares to the mix. If you haven't already done so, be sure to put Callaway on your shortlist.
Albany International Corp. engages in the machine clothing and engineered composites businesses. A global textiles and materials processing company, Albany specializes in machine clothing for paper mills and engineered structures for aerospace and other industries.
Key challenges remain for Albany in 2026. Deteriorating returns on capital make it clear that management's attempts at new investments are destroying value. Sales growth has been anemic in recent years and well below other industrial companies. A difficult macroeconomic environment and lingering inflationary conditions do not bode well for the company's outlook.
As we'll see, revenues are expected to decline in the current fiscal year. With the stock trading at over 19 times forward earnings, the lack of growth potential simply doesn't warrant a bullish stance.
The Zacks Rundown
A Zacks Rank #5 (Strong Sell) stock, Albany International is a component of the Zacks Textile – Products industry group, which currently ranks in the bottom 4% out of approximately 250 Zacks Ranked Industries. As such, we expect this industry group as a whole to underperform the market over the next 3 to 6 months, just as it has throughout the past year.
Stocks in the bottom tiers of industries can often be intriguing short candidates. While individual stocks have the ability to outperform even when they're part of a lagging industry, the inclusion in a weaker group serves as a headwind for any potential rallies and the journey forward is that much more difficult.
Albany's stock widely underperformed the market over the past year. A recent uptick into February presents a compelling short opportunity.
History of Earnings Misses & Deteriorating Outlook
Albany missed the earnings mark in two of the past four quarters. The company delivered a trailing four-quarter average earnings miss of -1.35%. Falling short of earnings estimates is a recipe for underperformance, and AIN is no exception.
The textiles company has been on the receiving end of negative earnings estimate revisions as of late. Looking into fiscal 2026, analysts cut estimates by -1.0% in the past 60 days. The Zacks Consensus EPS Estimate is now $2.96 per share. Revenues are anticipated to decline -7.5% this year to $1.05 billion.
Falling earnings estimates are a huge red flag and need to be respected. Negative growth year-over-year is the type of trend that bears like to see.
Technical Outlook
As illustrated below, AIN stock is in a sustained downtrend. Notice how the stock has been widely underperforming the major indices. Also note that shares are trading below a downward-sloping 200-day (red line) moving average – another good sign for the bears.
AIN stock has experienced what is known as a "death cross," whereby the stock's 50-day moving average (blue line) crosses below its 200-day moving average. Shares would have to make an outsized move to the upside and show increasing earnings estimate revisions to warrant taking any long positions. The stock has fallen nearly 30% in the past year alone.
Final Thoughts
A deteriorating fundamental and technical backdrop show that this stock is not set to make its way to new highs anytime soon. The fact that AIN stock is included in one of the worst-performing industry groups adds yet another headwind to a long list of concerns.
A shaky earnings history and falling future earnings estimates will likely serve as a ceiling to any potential rallies, nurturing the stock's downtrend.
Potential investors may want to give this stock the cold shoulder, or perhaps include it as part of a short or hedge strategy. Bulls will want to steer clear of AIN until the situation shows major signs of improvement.
Additional content:
Here's Why Home Depot's Pro Strategy Is a Long-Term Growth Lever
As the home improvement market faces headwinds from consumer uncertainty, The Home Depot, Inc. continues to deepen its Pro strategy to expand its addressable market and capture a larger share of wallet from professional customers. By focusing on these high-value customers who manage multifaceted projects, Home Depot aims to differentiate itself from traditional retail competitors.
The company is building a Pro ecosystem that combines stores, supply-chain assets, digital tools and dedicated sales teams. New offerings, such as a project planning tool and an artificial intelligence-driven blueprint takeoff application, are designed to convert complex manual processes into efficient digital workflows. These tools allow Pros to manage projects, estimate materials and complete purchases within a single platform, positioning Home Depot as a one-stop solution.
The Pro strategy is also supported by the integration of SRS and GMS, which extends reach into roofing, drywall and other specialty categories. Management noted that cross-selling among Home Depot, SRS and GMS is already underway through coordinated sales efforts, enabling account handoffs and larger project wins.
Management views the Pro market as a massive opportunity for share gains, particularly as Home Depot refines its ability to handle large-order deliveries and job-site services. This strategic focus positions the company to benefit as housing turnover and broader construction activity improve.
What the Latest Metrics Say About Home Depot
Home Depot, which competes with Floor & Decor Holdings, Inc. and Lowe's Companies, Inc., has seen its shares fall 7.9% in the past year compared with the industry's decline of 14.1%. While shares of Floor & Decor Holdings have plunged 35.2%, Lowe's has risen 6.3% in the same period.
From a valuation standpoint, Home Depot trades at a forward price-to-earnings ratio of 26.27, higher than the industry's 20.95. HD carries a Value Score of D. Home Depot is trading at a discount to Floor & Decor Holdings (with a forward 12-month P/E ratio of 30.48) but at a premium to Lowe's (22.41).
The Zacks Consensus Estimate for Home Depot's current financial-year sales implies year-over-year growth of 3.3%, while the same for earnings per share suggests a decline of 4.9%. For the next fiscal year, the consensus estimate indicates a 4.3% rise in sales and 4.4% growth in earnings.
Home Depot currently carries a Zacks Rank #4 (Sell).
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Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Callaway Golf and Albany International have been highlighted as Zacks Bull and Bear of the Day

As the home improvement market faces headwinds from consumer uncertainty, The Home Depot, Inc. HD continues to deepen its Pro strategy to expand its addressable market and capture a larger share of wallet from professional customers. By focusing on these high-value customers who manage multifaceted projects, Home Depot aims to differentiate itself from traditional retail competitors.
The company is building a Pro ecosystem that combines stores, supply-chain assets, digital tools and dedicated sales teams. New offerings, such as a project planning tool and an artificial intelligence-driven blueprint takeoff application, are designed to convert complex manual processes into efficient digital workflows. These tools allow Pros to manage projects, estimate materials and complete purchases within a single platform, positioning Home Depot as a one-stop solution.
The Pro strategy is also supported by the integration of SRS and GMS, which extends reach into roofing, drywall and other specialty categories. Management noted that cross-selling among Home Depot, SRS and GMS is already underway through coordinated sales efforts, enabling account handoffs and larger project wins.
Management views the Pro market as a massive opportunity for share gains, particularly as Home Depot refines its ability to handle large-order deliveries and job-site services. This strategic focus positions the company to benefit as housing turnover and broader construction activity improve.
What the Latest Metrics Say About Home Depot
Home Depot, which competes with Floor & Decor Holdings, Inc. FND and Lowe's Companies, Inc. LOW, has seen its shares fall 7.9% in the past year compared with the industry’s decline of 14.1%. While shares of Floor & Decor Holdings have plunged 35.2%, Lowe’s has risen 6.3% in the same period.
Image Source: Zacks Investment Research
From a valuation standpoint, Home Depot trades at a forward price-to-earnings ratio of 26.27, higher than the industry’s 20.95. HD carries a Value Score of D. Home Depot is trading at a discount to Floor & Decor Holdings (with a forward 12-month P/E ratio of 30.48) but at a premium to Lowe’s (22.41).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Home Depot’s current financial-year sales implies year-over-year growth of 3.3%, while the same for earnings per share suggests a decline of 4.9%. For the next fiscal year, the consensus estimate indicates a 4.3% rise in sales and 4.4% growth in earnings.
Image Source: Zacks Investment Research
Home Depot currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Here's Why Home Depot's Pro Strategy Is a Long-Term Growth Lever

Key Points
This monthly dividend company offers a 5.3% dividend yield.
A low P/E ratio increases the appeal of this retailer's dividend.
As the company addresses challenges, investors can clean up on this consumer stock's dividend.
Consumer stocks have long served as a steady, sometimes lucrative source of dividend income. The more successful ones benefit from a loyal customer foundation that fosters a consistent and growing profit base, ultimately translating into cash for shareholders.
Not all consumer stocks can maintain such streaks, meaning investors have to discern the businesses and financials of the stocks they own. These three stocks stand out as dividend growers on track to continue raising payouts, with a significant chance of stock price appreciation to add to one's total returns.
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1. Realty Income
Realty Income (NYSE: O) is a real estate investment trust (REIT) specializing in single-tenant commercial properties. Under such deals, the tenant covers taxes, insurance, and maintenance, ensuring steady cash flows.
Realty Income owns more than 15,500 such properties and boasts a client base that includes the likes of Home Depot, Dollar General, and Wynn Resorts. Also, with occupancy close to 99%, the company continues to acquire and develop additional properties.
Realty Income is also known as the "monthly dividend company," and true to that moniker, it has paid a dividend every month since it began offering payouts in 1994. It has also hiked that dividend at least one time annually since that year.
The payout now stands at $3.24 per share annually, giving it a dividend yield of 5.3%, far above the S&P 500 (SNPINDEX: ^GSPC) average of 1.1%. The payout hikes, combined with a depressed stock price, have raised the yield as high interest rates weighed on the stock.
However, the Federal Reserve has reduced interest rates in recent months. That should make more potential deals profitable, thereby raising Realty Income's profits and, likely, its stock price.
Investors should also know that Realty Income sells at just 15 times its FFO income, a measure of a REIT's free cash flow. Such conditions, along with its generous dividend, should help boost the stock over time.
2. Target
Target (NYSE: TGT) is one of America's best-known retailers. Its nearly 2,000 locations in all 50 states mean that more than 75% of Americans live within 10 miles of a Target location.
Admittedly, the company has struggled recently. Its upscale discount products seem to hold less appeal in an uncertain economy. Moreover, a seeming inability to reduce inventory has weighed on the stock, and the company's forays into and out of politics have managed to alienate both right-leaning and left-leaning shoppers.
That brought about a collapse in the stock in the last few years. Consequently, its 13 P/E ratio is far below retail peers like Walmart and Costco.
Still, Target is a Dividend King by virtue of its 54 years of dividend increases. At $4.56 per share yearly, its dividend yields 4.3%. Also, since abandoning the Dividend King status could further damage the stock, the annual payout hikes will likely continue.
Additionally, Target just promoted COO Michael Fiddelke to the CEO position. Under Fiddelke, Target plans to invest $5 billion in capital expenditures for store remodels, technology, and improved infrastructure.
Such changes could help revamp the struggling retailer. When also factoring in the low P/E ratio and high dividend yield, Target looks increasingly like a stock investors should double up on right now.
3. Clorox
Consumers know Clorox (NYSE: CLX) best for its flagship cleaning products. However, Kingsford, Hidden Valley Ranch, and Burt's Bees are among the many brands under its umbrella.
Nonetheless, when the obsession with cleaning subsided as the pandemic began to wind down, investors soured on the stock. Moreover, higher inflation, a cyberattack on the company in 2023, and a recent enterprise resource planning (ERP) project brought significant disruption to its business, further spooking shareholders.
That brought a considerable stock price decline, but it also reduced its P/E ratio to 18, which is near a multiyear low. By the same token, it helped boost the dividend yield on its $4.96 per share annual payout to 4.4%. The streak of annual payout hikes going back decades also reinforces the dividend's stability.
Additionally, business conditions could improve soon. The aforementioned ERP implementation that slowed sales should help increase efficiencies moving forward, which could accrue to the company's bottom line.
Furthermore, if the performance of other consumer staples giants like Procter & Gamble is any indication, brand loyalties could work in Clorox's favor despite inflation concerns. When considering such factors and the dividend, Clorox could turn into a market-beating income and growth stock.
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Will Healy has positions in Clorox, Realty Income, and Target. The Motley Fool has positions in and recommends Costco Wholesale, Home Depot, Realty Income, Target, and Walmart. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.