Home Depot Stock Drops Amid Macro Economic Pressures
Home Depot's (HD) stock price has dropped 32% from its all-time high as of September 25. The company's same-store sales growth has been under pressure due to a tighter macroeconomic backdrop with elevated inflation and higher interest rates.
The business will likely struggle posting notable gains until the Federal Reserve loosens monetary policy, which is expected to control inflation. Home Depot operates thousands of stores in the U.S., generating $48 billion in revenue just in its latest fiscal quarter (Q2 2026 ended August 2).
From a fundamental perspective, Home Depot's business has been under pressure in recent years, posting same-store sales declines in fiscal 2023 and 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, revealing how exposed Home Depot is to the macroeconomic environment. Before considering buying shares, investors should note that The Motley Fool's Stock Advisor analyst team did not include Home Depot in their list of top 10 stocks for investors to buy now.