The Home Depot, Inc. (NYSE:HD) is included among the The 12 Best Income Stocks to Buy Now.
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On December 17, Truist raised its price target on The Home Depot, Inc. (NYSE:HD) to $390 from $375 and maintained a Buy rating. The call came as part of a broader research note looking ahead to 2026 for Hardlines and Broadlines consumer names. The analyst said some slowing trends in the second half of FY25 are likely to keep consumers selective. Shoppers are expected to stay focused on “value,” choosing where and how to spend. For Home Depot, Truist pointed to a large reserve of untapped demand. More than $35 trillion in home values are effectively sitting on the sidelines. With recent rate cuts, homeowners now have significant “dry powder” to put back into their homes. As long as supply of used homes remains tight and prices remain stable or slightly higher, the company said it remains bullish on the home improvement category.
That optimism is accompanied by short-term caution. On December 9, The Home Depot, Inc. (NYSE:HD) forecast comparable sales growth for fiscal 2026 and earnings below analyst expectations. Demand for DIY projects and big-ticket purchases has cooled.
Management recognized the uncertainty. Customers are uncomfortable and that mentality is expected to continue next year. “We haven’t seen a catalyst or an inflection in real estate activity yet,” CFO Richard McPhail said on a conference call with investors. Demand for housing in the United States has been uneven, pressured by rising unemployment and still high home prices. Even as interest and mortgage rates decline, there has been no clear recovery. In its latest earnings report, the company projected a steeper decline in fiscal 2025 earnings.
Retailers like The Home Depot, Inc. (NYSE:HD) are seeing consumers abandon expensive renovations and big projects as borrowing costs remain high. Looking ahead, the company expects fiscal 2026 same-store sales to range between 2% and 2%. That’s behind analysts’ average estimate of 2.34%, according to LSEG data. The company also forecast adjusted EPS growth of up to 4%, compared with expectations for a 5.6% increase.
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