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Georgia-based The Home Depot, Inc. (HD) is a leader in the home improvement retail sector, boasting a market cap of $325.51 billion. Home Depot, renowned for its wide range of products and services, serves both DIY enthusiasts and professional contractors with an unmatched selection of building materials, home improvement supplies, and lawn and garden products. With numerous stores across North America, the company has cemented its leadership through outstanding customer service and a strong supply chain.
Companies worth $200 billion or more are described as “mega-cap stocks,” and HD fits right into that category. With a market cap surpassing this benchmark, Home Depot demonstrates significant size, stability, and impact in the home improvement retail industry. Over the years, the company has driven growth through strategic investments, continually enhancing its customer service and expanding its market presence.
Shares of HD are currently trading 16.8% below their 52-week high of $396.87, which they hit on Mar. 21. Also, HD has declined 12.7% over the past three months, underperforming the S&P 500 Index’s ($SPX) 5.4% returns over the same time frame.
Over the longer term, HD has underperformed, too, with a decline of 4.7% on a YTD basis and a 12.7% increase over the past 52 weeks. In comparison, the S&P 500 has gained 12.3% in 2024 and witnessed a significant 25.3% rally over the past year.
To confirm the bearish price trend, HD has been trading below its 50-day moving average since early April and its 200-day moving average since late May.
Home Depot's shares fell nearly 1% after announcing its Q1 results on May 14. The company reported a 2.8% decline in comparable sales, with revenue at $36.42 billion, missing analyst estimates of $36.65 billion. Despite this, its EPS was $3.63, slightly surpassing the expected $3.59. For the full year, Home Depot has forecasted a 1% increase in both revenue and EPS.
Highlighting the contrast in performance, HD's competitor, Lowe's Companies, Inc. (LOW), has significantly underperformed both HD and the broader market indexes. LOW has gained 6.1% over the last 52 weeks.
Analysts are moderately optimistic about HD's prospects despite the weak price performance. The stock has a consensus rating of "Moderate Buy" from 31 analysts in coverage. The mean price target of $382.41 reflects an 15.8% premium over current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
