Stifel Reiterates Hold Rating on Home Depot Amid Pricing Trends

Stifel reiterated its Hold rating on Home Depot () stock, citing recent pricing trends. Analyst W. Andrew Carter noted that prices decelerated over the past three months for both Home Depot and Lowe's ()), with the exception of Lowe's appliance pricing.

The companies reported August pricing down sequentially in all three categories. Home Depot traded at $293.20, while Lowe's was at $189.28. This comes as the stock is trading near its 52-week low of $289.10, a decline of 26% over the past year.

According to Stifel, Home Depot appears overvalued at current levels. The company maintains a dividend yield of 3.18%, having raised its dividend for 16 consecutive years. Stifel also maintained its Hold rating on Lowe's stock and will monitor for a broad reacceleration in pricing across the home improvement retailers.

Recently, Home Depot reported a 1.7% year-over-year growth in comparable sales for the second quarter, maintaining its fiscal 2026 guidance of flat to 2% growth. UBS reiterated a Buy rating for Home Depot with a price target of $420, while Truist Securities adjusted its price target to $373 from $369, citing improved sales and the impact of tariff refunds on gross margins and earnings per share.