Home Depot Stock Struggles Despite Strong Earnings Forecast

The Home Depot, Inc. (HD) is one of the largest home improvement retailers in the world, with a market cap of $347.2 billion.

Despite its size and reputation, HD stock has underperformed the broader market over the past 52 weeks, falling 8.6% compared to the S&P 500 Index's ($SPX) 22.2% gain.

In May, Home Depot reported better-than-expected first-quarter 2026 adjusted EPS of $3.43 and sales of $41.77 billion, which led to a minor increase in shares on that day.

However, the company warned of choppy demand for large projects due to high mortgage rates, elevated home prices, and uncertainty.

Analysts expect Home Depot's adjusted EPS to grow 2.2% year over year to $15.01 for the fiscal year ending in January 2027.

The consensus rating among the 34 analysts covering the stock is a 'Moderate Buy', with one analyst maintaining a 'Hold' rating and one analyst giving a 'Strong Sell' rating.