Home Depot, Inc. (The) (HD) Stock Price & How to Invest

The Home Depot, Inc. is the world's largest home improvement retailer, operating approximately 2,300 stores across the United States, Canada, and other locations in North America. The company sells building materials, home improvement products, lawn and garden supplies, and provides installation and tool-rental services to two main customer groups: do-it-yourself homeowners (DIY) and professional contractors (Pros). Revenue is generated almost entirely through retail store sales and, increasingly, through digital channels (online sales reached 15.9% of total revenue in fiscal 2025) and through its specialty trade distribution arm, SRS Distribution, which serves Pros directly with roofing, landscaping, pool supplies, and now drywall and steel framing products following the September 2025 acquisition of GMS Inc. The company earns a gross margin of roughly 33% and an operating margin in the low-to-mid teens, with strong free cash flow that funds a steadily growing dividend (156 consecutive quarterly payments as of early 2026) and periodic share repurchases.

Home Depot was founded in Atlanta in 1978 by Bernie Marcus and Arthur Blank, grew to $1 billion in annual sales by 1986, and has compounded into one of the largest retailers in the world. Ted Decker has served as Chair, President, and CEO since 2022, steering the company through a post-pandemic demand normalization and toward a Pro-centric strategy branded around deepening wallet share with contractors. The fiscal 2024 acquisition of SRS Distribution was the largest in company history, and the follow-on GMS acquisition in 2025 for approximately $5.5 billion accelerated that trajectory. Richard McPhail serves as Chief Financial Officer. The company is a component of the Dow Jones Industrial Average and the S&P 500.

The most direct risk is a prolonged freeze in the US housing market: low inventory, elevated mortgage rates, and high home prices have kept transaction volumes near multi-decade lows, directly suppressing demand for the large remodeling projects that drive Home Depot's highest-ticket sales. Tariffs on imported goods (a significant portion of Home Depot's product mix is sourced internationally) could compress margins or require price increases that dampen consumer demand, even as management has worked to diversify its supply chain. The SRS and GMS acquisitions added substantial long-term debt to the balance sheet and pushed ROIC down to approximately 25.7% from 31.3%, and integration execution risk remains elevated while buybacks are paused. Finally, the stock trades at a P/E of roughly 23x, a premium to the broader retail industry, which leaves limited margin for error if earnings guidance is revised lower.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Home Depot, Inc. (The)'s investor relations page or your broker.

• Revenue (Fiscal 2025, ended Feb 1, 2026): ~$164.7 billion
• Net Earnings (Fiscal 2025): ~$14.2 billion
• Diluted EPS (Fiscal 2025): $14.23 (adjusted: $14.69)
• Gross Margin (Fiscal 2026 guidance): ~33.1%
• Operating Margin (Fiscal 2026 guidance): ~12.4% to 12.6%
• P/E Ratio (TTM): ~22.95x
• Annual Dividend Per Share: $9.32 (~2.5% yield)
• Comparable Sales Growth (Fiscal 2025): +0.3%

Home Depot grew total revenue 3.2% in fiscal 2025, but most of that growth came from the SRS and GMS acquisitions rather than organic comparable-store performance, which was essentially flat at +0.3%. Profitability softened modestly as acquisition-related costs, higher debt service, and integration expenses weighed on margins and pushed ROIC down from 31.3% to approximately 25.7%. The stock's trailing P/E of roughly 23x sits near its 10-year historical average and above the peer group, reflecting investor confidence in the long-term Pro strategy but leaving limited cushion if the housing market remains depressed longer than expected.

If you want HD exposure as part of a larger bundle rather than directly, these ETFs hold it meaningfully. Weights are approximate and refresh quarterly.

There are three common ways to get HD exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it (HDV, DGRO, VTV), which spreads the position across many companies. Or build it into a focused thematic basket, so HD sits alongside other stocks that express the same thesis.

Walnut takes the basket route. Describe a thesis where HD fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

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Home Depot is right now a Pro-contractor growth story grafted onto a mature big-box retail base: professional customers account for more than half of company sales, online revenue has reached 15.9% of total sales and is growing high single digits, and the SRS and GMS acquisitions have added over 1,200 specialty distribution locations serving roofers, drywall contractors, and landscapers across the US and Canada. If you believe that housing turnover eventually normalizes and that the Pro-focused distribution build-out creates durable share gains in a fragmented market, the question becomes sizing and overlap with other consumer-discretionary or housing-cycle positions, not timing; the risk is that mortgage rates stay elevated long enough to keep large remodeling projects on hold, compressing comparable-store sales growth and pressuring a valuation that already trades above the retail-industry average P/E.

Whether HD is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is HD a buy?, and where the stock could go from here in the HD stock forecast.

For income investors, whether HD pays a dividend and how the payout looks is covered in does HD pay a dividend?