TD Cowen Reaffirms 'Buy' Rating on Home Depot Amid Strong Sales Growth

TD Cowen has reaffirmed its 'Buy' rating on Home Depot (NYSE:HD) stock, despite trimming earnings per share estimates for fiscal years 2026, 2027, and 2028. The firm cited stronger second-quarter comparable sales growth and a more favorable second-half comparable sales setup as reasons to maintain the bullish stance.

The company reported a 1.7% increase in comparable sales during its recent quarter, surpassing the consensus estimate of 1.1%. TD Cowen now models fiscal 2026 comparable sales growth at 1.6%, with potential upside.

However, the firm noted that Home Depot faces broader cost pressures affecting the retail sector, which could impact gross margins. Pricing remains a potential offset to these costs, but tariff refund support is diminishing.