Is HD a good stock to buy right now?

Based on our 6-factor quantitative model, HOME DEPOT, INC. (HD) receives a "Reduce" rating with a composite score of 47.2/100. It is ranked #2,126 out of 4,446 stocks. Key factor scores: Quality 50/100, Value 62/100, Momentum 37/100. The timing signal is "Neutral". This is quantitative analysis only — not investment advice.

What is the stock rating for HD?

HOME DEPOT, INC. (HD) has a "Reduce" rating and 2-star score. The composite score of 47.2 ranks it #2,126 among 4,446 U.S. stocks. Ratings are updated weekly using academically-proven factor models.

What sector is HD in?

HOME DEPOT, INC. operates in the Consumer Discretionary sector (Retail industry) with a market cap of $328.25 billion. It is classified as a mega-cap stock.

Does HD pay a dividend?

Yes, HD pays a dividend with a current yield of 2.41%. For every $1,000 invested, you would receive approximately $24.10 in annual dividend income.

What is HD's P/E ratio?

HD has a trailing P/E ratio of 20.83x. The Consumer Discretionary sector average is 24.5x. This P/E is in a moderate range relative to the broader market.

How profitable is HD?

HD's quality factor score is 50/100. Gross margin: 33.5%. ROE: 119.0% vs sector average 6.2%. Margins are moderate to low, reflecting competitive market dynamics.

How is HD valued compared to peers?

HD's value factor score is 62/100 (higher = cheaper). Key multiples: P/E 20.8x, EV/EBITDA 14.3x. The stock appears attractively valued versus peers.

What is HD's debt level?

HD's debt-to-equity ratio is 386%. Sector average: 89%. Elevated leverage increases credit risk.

HD has a beta of 0.91, meaning it tracks the market. Stability score: 85/100.

Does HD have high short interest?

HD's short interest factor score is 25/100 (higher = less short selling). Elevated short interest may indicate bearish sentiment or short squeeze potential.

HD Stock Analysis: Reduce (Score 47.2/100) | Blank Capital Research

Data Series	1D	5D	1M	YTD	1Y	3Y	5Y	10Y
HD	-0.66%	+4.88%	-5.55%	-1.96%	-4.60%	-	-	-
Industry Proxy XLY	+0.13%	+4.38%	-1.35%	-5.46%	-39.92%	-	-	-
U.S. Market SPY	-0.07%	+3.60%	+0.34%	-0.36%	+29.52%	-	-	-
Alpha vs Market	-0.59%	+1.28%	-5.88%	-1.60%	-34.13%	-	-	-
Alpha vs Sector	-0.79%	+0.50%	-4.19%	+3.50%	+35.32%	-	-	-

Metric	HD	Benchmark
P/E Ratio	20.8x	-15%
EV/EBITDA	14.3x	+192%
Price / Book	24.8x

Stock Entity	Score▼	Quality	Value	Momentum	P/E Ratio	ROE	Gross Margin	Net Margin	Rev Growth	D/E Ratio	Market Cap	Compare
CASY CASEYS GENERAL STORES INC	57	50	68	67	42.2x	16.9%	24.0%	3.8%	0.3%	123.0x	$27.2B	VS
TGT TARGET CORP	53	50	70	56	16.2x	20.7%	28.4%	3.4%	-0.7%	89.0x	$54.5B	VS
APEI AMERICAN PUBLIC EDUCATION INC	53	49	58	72	78.3x	4.6%	52.8%	2.1%	6.8%	32.0x	$1.1B	VS
LINC LINCOLN EDUCATIONAL SERVICES CORP	52	50	48	75	116.7x	5.6%	59.2%	2.3%	37.4%	147.0x	$1.3B	VS
FIVE FIVE BELOW, INC	52	50	56	73	105.5x	5.4%	32.5%	3.1%	26.5%	125.0x	$13.0B	VS
IMKTA INGLES MARKETS INC	51	50	51	62	17.4x	6.2%	23.9%	1.9%	0.4%	57.0x	$1.7B	VS
PRDO PERDOCEO EDUCATION Corp	51	50	70	57	14.2x	16.7%	100.0%	20.4%	27.1%	28.0x	$2.4B	VS
MCRI MONARCH CASINO & RESORT INC	51	50	66	47	16.7x	19.7%	24.5%	19.4%	11.5%	33.0x	$1.7B	VS
FCFS FirstCash Holdings, Inc.	49	50	29	66	34.7x	10.8%	50.2%	8.0%	26.6%	98.0x	$8.4B	VS
ESCA ESCALADE INC	48	50	65	51	15.2x	9.0%	26.1%	6.2%	8.4%	11.0x	$249M	VS
HD HOME DEPOT, INC.	47	50	62	37	20.8x	119.0%	33.5%	9.2%	13.6%	386.0x	$328.2B

Key Ratio	TTM	2026	2025	2024	2023	2022	2021	2020	2019	2018	2017
Gross Margin %	0.3%	0.3%	0.3%	0.3%	0.3%	0.3%	0.3%	0.3%	0.3%	0.3%	0.3%
Operating Margin %	0.1%	0.1%	0.1%	0.1%	0.2%	0.2%	0.1%	0.1%	0.1%	0.1%	0.1%
EBITDA Margin %	0.2%	0.1%	0.2%	0.2%	0.2%	0.2%	0.2%	0.2%	0.2%	0.2%	0.2%
Net Margin %	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%
FCF Margin %	-	-	-	-	-	-	12.4%	10.0%	9.9%	10.0%	8.6%
ROE %	1.2%	1.1%	2.2%	14.5%	11.0%	-968.9%	3.9%	-360.8%	-592.2%	5.9%	1.8%
ROA %	0.1%	0.1%	0.2%	0.2%	0.2%	0.2%	0.2%	0.2%	0.3%	0.2%	0.2%
ROIC %	0.3%	26.5%	29.3%	39.7%	44.5%	52.4%	44.2%	47.7%	48.0%	46.6%	41.8%

Key Ratio

TTM

2026

2025

2024

2023

2022

2021

2020

2019

2018

2017

Gross Margin %

0.3%

Operating Margin %

0.1%

0.2%

0.1%

EBITDA Margin %

0.2%

0.1%

0.2%

Net Margin %

0.1%

FCF Margin %

12.4%

10.0%

9.9%

10.0%

8.6%

ROE %

1.2%

1.1%

2.2%

14.5%

11.0%

-968.9%

3.9%

-360.8%

-592.2%

5.9%

1.8%

ROA %

0.1%

0.2%

0.3%

0.2%

ROIC %

0.3%

26.5%

29.3%

39.7%

44.5%

52.4%

44.2%

47.7%

48.0%

46.6%

41.8%

Line Item	TTM	2026	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
	$164.6B	$164.7B	$159.5B	$152.7B	$157.4B	$151.2B	$132.1B	$110.2B	$108.2B	$100.9B	$94.6B	$88.5B
	—	$109.8B	$106.2B	$101.7B	$104.6B	$100.3B	—	—	—	—	—	—
	$55.1B	$54.9B	$53.3B	$51.0B	$52.8B	$50.8B	$44.9B	$37.6B	$37.2B	$34.4B	$32.3B	$30.3B
Gross Margin	33.5%	33.3%	33.4%	33.4%	33.5%	33.6%	34.0%	34.1%	34.3%	34.1%	34.2%	34.2%
	—	$30.7B	$28.7B	$26.6B	$26.3B	$25.4B	—	—	—	—	—	—
Depreciation	—	$3.3B	$3.0B	$2.7B	$2.5B	$2.4B	$2.5B	$2.3B	$2.2B	$2.1B	$2.0B	$1.9B
Total Operating Expenses	—	$34.0B	$31.8B	$29.3B	$28.7B	$27.8B	—	—	—	—	—	—
	$22.4B	$20.9B	$21.5B	$21.7B	$24.0B	$23.0B	$18.3B	$15.8B	$15.5B	$14.7B	$13.4B	$11.8B
EBIT	$22.4B	$20.9B	$21.5B	$21.7B	$24.0B	$23.0B	$18.3B	$15.8B	$15.5B	$14.7B	$13.4B	$11.8B
EBITDA	$25.6B	$24.2B	$24.6B	$24.4B	$26.5B	$25.4B	$20.8B	$18.1B	$17.7B	$16.7B	$15.4B	$13.6B
Operating Margin	13.6%	12.7%	13.5%	14.2%	15.3%	15.2%	13.8%	14.4%	14.3%	14.5%	14.2%	13.3%
EBITDA Margin	15.6%	14.7%	15.4%	16.0%	16.8%	16.8%	15.7%	16.5%	16.3%	16.6%	16.3%	15.4%
	—	—	—	$1.9B	$1.6B	$1.3B	$1.3B	$1.2B	$1.1B	$1.1B	$972M	$919M
	—	$18.6B	$19.4B	$19.9B	$22.5B	$21.7B	—	—	—	—	—	—
Income Tax Expense	—	$4.4B	$4.6B	$4.8B	$5.4B	$5.3B	$4.1B	$3.5B	$3.4B	$5.1B	$4.5B	$4.0B
	$15.2B	$14.2B	$14.8B	$15.1B	$17.1B	$16.4B	$12.9B	$11.2B	$11.1B	$8.6B	$8.0B	$7.0B
Net Margin	9.2%	8.6%	9.3%	9.9%	10.9%	10.9%	9.7%	10.2%	10.3%	8.6%	8.4%	7.9%
	$14.26	$14.26	$14.96	$15.16	$16.74	$15.59	$11.98	$10.29	$9.78	$7.33	$6.47	$5.49
Diluted EPS	$14.26	$14.23	$14.91	$15.11	$16.69	$15.53	$11.98	$10.29	$9.78	$7.33	$6.47	$5.49
Weighted Avg Basic	—	993M	990M	999M	1.0B	1.1B	—	—	—	—	—	—
Weighted Avg Diluted	—	995M	993M	1.0B	1.0B	1.1B	—	—	—	—	—	—

Line Item

TTM

2026

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

$164.6B

$164.7B

$159.5B

$152.7B

$157.4B

$151.2B

$132.1B

$110.2B

$108.2B

$100.9B

$94.6B

$88.5B

—

$109.8B

$106.2B

$101.7B

$104.6B

$100.3B

—

$55.1B

$54.9B

$53.3B

$51.0B

$52.8B

$50.8B

$44.9B

$37.6B

$37.2B

$34.4B

$32.3B

$30.3B

Gross Margin

33.5%

33.3%

33.4%

33.5%

33.6%

34.0%

34.1%

34.3%

34.1%

34.2%

—

$30.7B

$28.7B

$26.6B

$26.3B

$25.4B

—

Depreciation

—

$3.3B

$3.0B

$2.7B

$2.5B

$2.4B

$2.5B

$2.3B

$2.2B

$2.1B

$2.0B

$1.9B

Total Operating Expenses

—

$34.0B

$31.8B

$29.3B

$28.7B

$27.8B

—

$22.4B

$20.9B

$21.5B

$21.7B

$24.0B

$23.0B

$18.3B

$15.8B

$15.5B

$14.7B

$13.4B

$11.8B

EBIT

$22.4B

$20.9B

$21.5B

$21.7B

$24.0B

$23.0B

$18.3B

$15.8B

$15.5B

$14.7B

$13.4B

$11.8B

EBITDA

$25.6B

$24.2B

$24.6B

$24.4B

$26.5B

$25.4B

$20.8B

$18.1B

$17.7B

$16.7B

$15.4B

$13.6B

Operating Margin

13.6%

12.7%

13.5%

14.2%

15.3%

15.2%

13.8%

14.4%

14.3%

14.5%

14.2%

13.3%

EBITDA Margin

15.6%

14.7%

15.4%

16.0%

16.8%

15.7%

16.5%

16.3%

16.6%

16.3%

15.4%

—

$1.9B

$1.6B

$1.3B

$1.2B

$1.1B

$972M

$919M

—

$18.6B

$19.4B

$19.9B

$22.5B

$21.7B

—

Income Tax Expense

—

$4.4B

$4.6B

$4.8B

$5.4B

$5.3B

$4.1B

$3.5B

$3.4B

$5.1B

$4.5B

$4.0B

$15.2B

$14.2B

$14.8B

$15.1B

$17.1B

$16.4B

$12.9B

$11.2B

$11.1B

$8.6B

$8.0B

$7.0B

Net Margin

9.2%

8.6%

9.3%

9.9%

10.9%

9.7%

10.2%

10.3%

8.6%

8.4%

7.9%

$14.26

$14.96

$15.16

$16.74

$15.59

$11.98

$10.29

$9.78

$7.33

$6.47

$5.49

Diluted EPS

$14.26

$14.23

$14.91

$15.11

$16.69

$15.53

$11.98

$10.29

$9.78

$7.33

$6.47

$5.49

Weighted Avg Basic

—

993M

990M

999M

1.0B

1.1B

—

Weighted Avg Diluted

—

995M

993M

1.0B

1.1B

—

HOME DEPOT, INC. (HD) Stock Analysis — April 2026 Rating, Price, and Forecast

Last updated: April 2026

Company Overview — What Does HOME DEPOT, INC. Do?

The Home Depot, Inc. operates as a home improvement retailer. It operates The Home Depot stores that sell various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products The company also offers installation services for flooring, cabinets and cabinet makeovers, countertops, furnaces and central air systems, and windows. In addition, it provides tool and equipment rental services. The company primarily serves homeowners; and professional renovators/remodelers, general contractors, maintenance professionals, handymen, property managers, building service contractors, and specialty tradesmen, such as electricians, plumbers, and painters. It also sells its products through websites, including homedepot.com; blinds.com, an online site for custom window coverings; and thecompanystore.com, an online site for textiles and décor products. As of December 31, 2021, the company operated 2,317 stores in the United States. The Home Depot, Inc. was incorporated in 1978 and is based in Atlanta, Georgia. HOME DEPOT, INC. (HD) is classified as a mega-cap stock in the Consumer Discretionary sector, specifically within the Retail industry. The company is led by CEO Edward P. Decker and employs approximately 490,600 people, headquartered in Atlanta, Georgia. With a market capitalization of $328.2B, HD is one of the largest companies in the Consumer Discretionary sector.

HOME DEPOT, INC. (HD) Stock Rating — Reduce (April 2026)

As of April 2026, HOME DEPOT, INC. receives a Reduce rating with a composite score of 47.2/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.HD ranks #2,126 out of 4,446 stocks in our coverage universe. Within the Consumer Discretionary sector, HOME DEPOT, INC. ranks #208 of 442 stocks, placing it in the upper half of its Consumer Discretionary peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

HD Stock Price and 52-Week Range

HOME DEPOT, INC. (HD) currently trades at $337.05. The stock lost $2.53 (0.7%) in the most recent trading session. The 52-week high for HD is $426.75, which means the stock is currently trading -21.0% from its annual peak. The 52-week low is $326.31, putting the stock 3.3% above its annual trough. Recent trading volume was 3.2M shares, reflecting moderate market activity.

Is HD Overvalued or Undervalued? — Valuation Analysis

HOME DEPOT, INC. (HD) carries a value factor score of 62/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 20.83x, compared to the Consumer Discretionary sector average of 24.47x — a discount of 15%. The price-to-book ratio stands at 24.78x, versus the sector average of 1.99x. The price-to-sales ratio is 1.93x, compared to 0.27x for the average Consumer Discretionary stock. On an enterprise value basis, HD trades at 14.34x EV/EBITDA, versus 4.91x for the sector.

Overall, HD's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.

HOME DEPOT, INC. Profitability — ROE, Margins, and Quality Score

HOME DEPOT, INC. (HD) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 119.0%, compared to the Consumer Discretionary sector average of 6.2%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 14.5% versus the sector average of 2.5%.

On a margin basis, HOME DEPOT, INC. reports gross margins of 33.5%, compared to 36.9% for the sector. The operating margin is 13.6% (sector: 3.8%). Net profit margin stands at 9.2%, versus 2.1% for the average Consumer Discretionary stock. Revenue growth is running at 13.6% on a trailing basis, compared to 3.3% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.

HD Debt, Balance Sheet, and Financial Health

HOME DEPOT, INC. has a debt-to-equity ratio of 386.0%, compared to the Consumer Discretionary sector average of 89.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.06x, suggesting adequate working capital coverage. Total debt on the balance sheet is $49.40B.

HD has a beta of 0.91, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for HOME DEPOT, INC. is 85/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.

HOME DEPOT, INC. Revenue and Earnings History — Quarterly Trend

In TTM 2026, HOME DEPOT, INC. reported revenue of $164.60B and earnings per share (EPS) of $14.26. Net income for the quarter was $15.24B. Gross margin was 33.5%. Operating income came in at $22.44B.

In FY 2026, HOME DEPOT, INC. reported revenue of $164.68B and earnings per share (EPS) of $14.26. Net income for the quarter was $14.16B. Gross margin was 33.3%. Revenue grew 3.2% year-over-year compared to FY 2025. Operating income came in at $20.89B.

In Q3 2026, HOME DEPOT, INC. reported revenue of $41.35B and earnings per share (EPS) of $3.63. Net income for the quarter was $3.60B. Gross margin was 33.4%. Revenue grew 2.8% year-over-year compared to Q3 2025. Operating income came in at $5.35B.

In Q1 2026, HOME DEPOT, INC. reported revenue of $39.86B and earnings per share (EPS) of $3.46. Net income for the quarter was $3.43B. Gross margin was 33.8%. Revenue grew 9.4% year-over-year compared to Q1 2025. Operating income came in at $5.13B.

Over the past 8 quarters, HOME DEPOT, INC. has demonstrated a growth trajectory, with revenue expanding from $36.42B to $164.60B. Investors analyzing HD stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

HD Dividend Yield and Income Analysis

HOME DEPOT, INC. (HD) currently pays a dividend yield of 2.4%. At this yield, a $10,000 investment in HD stock would generate approximately $$241.00 in annual dividend income. The net margin of 9.2% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.

HD Momentum and Technical Analysis Profile

HOME DEPOT, INC. (HD) has a momentum factor score of 37/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 28/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 25/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.

HD vs Competitors — Consumer Discretionary Sector Ranking and Peer Comparison

Within the Consumer Discretionary sector, HOME DEPOT, INC. (HD) ranks #208 out of 442 stocks based on the Blank Capital composite score. This places HD in the upper half of all Consumer Discretionary stocks in our coverage universe. Key competitors and sector peers include MONARCH CASINO & RESORT INC (MCRI) with a score of 50.5/100, CASEYS GENERAL STORES INC (CASY) with a score of 57.3/100, INGLES MARKETS INC (IMKTA) with a score of 51.0/100, FIVE BELOW, INC (FIVE) with a score of 51.6/100, and TARGET CORP (TGT) with a score of 52.6/100.

Comparing HD against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full HD vs S&P 500 (SPY) comparison to assess how HOME DEPOT, INC. stacks up against the broader market across all factor dimensions.

HD Next Earnings Date

No upcoming earnings date has been announced for HOME DEPOT, INC. (HD) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy HD? — Investment Thesis Summary

The quantitative profile for HOME DEPOT, INC. suggests caution. The value score of 62/100 suggests attractive pricing relative to fundamentals. Momentum is weak at 37/100, a headwind for near-term performance. Low volatility (stability score 85/100) reduces downside risk.

In summary, HOME DEPOT, INC. (HD) earns a Reduce rating with a composite score of 47.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on HD stock.

Related Resources for HD Investors

Explore more research and tools: HD vs S&P 500 comparison, top Consumer Discretionary stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare HD head-to-head with peers: HD vs MCRI, HD vs CASY, HD vs IMKTA.

Business quality

Valuation edge

Market alpha

Unlock Investment Thesis

Unlock Performance & Technicals

Unlock Valuation Tools

Institutional peer matrix

Dispersion: efficiency vs. valuation

Lateral intelligence network

Unlock Financial Statements

Unlock Ownership & Management

Intelligence Feed

Unlock Earnings Transcripts

Institutional Intelligence FAQ

Related Research & Tools

Related Consumer Discretionary Stocks

HOME DEPOT, INC. (HD) Stock Analysis — April 2026 Rating, Price, and Forecast

Company Overview — What Does HOME DEPOT, INC. Do?

HOME DEPOT, INC. (HD) Stock Rating — Reduce (April 2026)

HD Stock Price and 52-Week Range

Is HD Overvalued or Undervalued? — Valuation Analysis

HOME DEPOT, INC. Profitability — ROE, Margins, and Quality Score

HD Debt, Balance Sheet, and Financial Health

HOME DEPOT, INC. Revenue and Earnings History — Quarterly Trend

HD Dividend Yield and Income Analysis

HD Momentum and Technical Analysis Profile

HD vs Competitors — Consumer Discretionary Sector Ranking and Peer Comparison

HD Next Earnings Date

Should You Buy HD? — Investment Thesis Summary

Related Resources for HD Investors

Comments

Institutional Benchmarks

Get alerted on rating changes

Intelligence Feed

Carote has cookware secretly up to 60% off on Amazon — including a 44-piece set

Is Home Depot (HD) a Buy as Wall Street Analysts Look Optimistic?

Home Depot (HD) Is Up 5.6% After ESG Push Meets Easing Oil Costs and Tech Investment Shift

Walmart's H-1B filings fell by more than half in the wake of Trump's visa shake-up

How many employees does Home Depot have?