Headquartered in Atlanta, Georgia, The Home Depot, Inc. (HD) is a leading home improvement chain that operates department stores offering building supplies, renovation products and installation services to homeowners and professional contractors. Its network includes numerous locations in the US, Canada and Mexico, supported by strong logistics and marketing operations. With a market capitalization of $335.03 billion, the company is considered a “mega-cap” stock.
Due to weaker market expectations for housing and home improvement spending, Home Depot stock is down. The stock had hit a 52-week low of $326.31 in April, but is up 7.6% from that level. Over the past three months, the stock has fallen 14.1%. On the other hand, the Nasdaq Composite Index ($NASX) gained 7.4% during the same period.
In the longer term, this poor performance persists. Over the past 52 weeks, Home Depot shares have fallen 18.1%, while over the past six months they are down 3.2%. On the other hand, the Nasdaq Composite gained 20.8% and 22.9% during the same periods, respectively. Home Depot stock has been trading below its 50-day moving average since early October and below its 200-day moving average since early November.
On November 18, Home Depot reported its third-quarter results for fiscal 2025. The company’s revenue increased a modest 2.8% year over year to $41.35 billion, which was slightly higher than the $41.21 billion that Wall Street analysts were expecting. Given this subdued top-line performance, its adjusted EPS declined 1.1% year over year to $3.74, also below the $3.83 expected by the Street. Home Depot shares fell 6% intraday on November 18.
Home Depot reported that it faces a challenging operating environment, with a lack of storms weighing on specific categories. The company was expected to continue facing pressure from stormy lack of activity, continued consumer uncertainty and real estate pressure in the fourth quarter as well.
We compared Home Depot’s performance to that of another home improvement retailer, Lowe’s Companies, Inc. (LOW), which fell 13.5% over the past 52 weeks but gained 7.7% over the past six months. Therefore, Home Depot has clearly underperformed here.