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Home Depot (The)NYSEConsumer DiscretionaryHome Improvement RetailSnapshot 2026-06-12
Intact
$328.39+0.73%
Close 2026-06-12 · 1-day change
Recent financial performance is holding in the top half of its industry — the reason to own it looks intact.
The bottom line
Recent financial performance is neutral, and earnings quality is also neutral, indicating some inconsistency in cash backing reported profits. Management's recent track record has been fairly steady, but the capital stance is capital unfriendly, which may raise concerns among investors. The sector backdrop is a headwind, suggesting challenges in the broader market. Peer multiples imply a price about 16% below where it trades (it looks expensive on this basis); the read is fair, priced roughly in line with peer multiples. If HD cuts guidance on the next call, that could be a meaningful negative. This read is provisional.
as of 2026-06-12
Quick facts
- Exchange
- NYSE
- Sector
- Consumer Discretionary
- Industry
- Home Improvement Retail
- Market cap
- $321.16B
- Employees
- 472,400
- IPO date
- 1981-09-22
- Next earnings
- 2026-08-18
Price
Daily closes. Earnings/event dots are placed inline.
Adjusted daily closes (split & dividend). Scroll over the chart to zoom; click a range to reset.
EarningsMaterial event
What's priced in
(what the market already expects)What it's worth (estimated)
A consensus fair price across 8 valuation methods, at three horizons. Current price $328.39. Estimates are diagnostics, not price targets. Short-horizon estimates are close to coin-flips, so confidence is a method-agreement read, not a prediction.
12-month· primaryfull
$286.80consensus
Range $268.33 – $327.99
vs price: +15% above
Method agreement — · 8 methods
No-growth: today's peer multiple on trailing earnings. The headline read.
3-yearfair
$361.52consensus
Range $323.90 – $418.47
vs price: -9% below
Method agreement — · 6 methods
Embeds projected growth. Leans optimistic by design. Upside context.
5-yearfair
How much to trust our fair value
We take the 12-month fair value above and grade our own number — how the market prices this name versus what we'd justify, and where the two diverge.
Aligned with peersmedium confidence
At $328 HD trades at 23× p/e, in line with its 18× p/e peer median. Our $291 fair value reflects that, medium confidence. Analysts: $320–$454. Not investment advice.
Multiple (P/E)
22.7x
peer 18.3x · own history 22.5x
Premium
1.2x peer
1.0x its own history
Growth the price needs
13%
our forecast -0%
Our fair value
$290.76
range $268.33 – $328.17
Analyst range(a guide on our number, not a target)Our number is below the analyst range
How this stock is priced
One valuation read at a 12-month horizon, plus how price compares to peers and the company's own history.
Long-term · 1–3 yr
fullfair12-month view
What's priced inStretched
The market is pricing in roughly 13% near-term growth, ahead of our forecast of about 0%. This describes what's priced in, not a forecast of the move.
Low fragilityrisk posture, not a price call
Only weak execution quality — not the full expensive x weak x turbulent stack.
Historical context
For similar setups historically (n=20,154): about 33% saw a 20%+ drawdown, and roughly 76% of those did not recover within the year. These are historical base rates for the cohort, not a forecast of this stock.
How strong is the business
(quality & execution)Factor signals
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Recent financial performance
neutralOperating income rose in 1 of the last 3 quarter-over-quarter moves. Historically, Consumer Discretionary names rated neutral grew net income 48% of the time over the next year (vs 64% for the rest of the cohort, n=3804).
63rd pctl · Consumer Discretionary
Earnings quality
neutralOver the trailing year it converted 1.29x of net income into operating cash flow. Historically, Consumer Discretionary names rated neutral grew net income 52% of the time over the next year (vs 55% for the rest of the cohort, n=3229).
31st pctl · Consumer Discretionary
Macro sensitivity
Most sensitive to the broad stock market and real (inflation-adjusted) rates.
- the broad stock market: This stock moves with the broad market (high beta).
- real (inflation-adjusted) rates: This stock behaves like a long-duration asset — tends to fall when real rates rise.
- long-term interest rates: This stock tends to fall when long-term rates rise.
Not enough signal to read sensitivity to the US dollar, Fed net liquidity.
Earnings setup & market context
The next print and the backdrop around it (sector regime and the AI cycle). Context for the path, not a forecast of returns.
Earnings setup · pre-print positioning
forward-looking
Neutral13 PT revisions / 30d, avg 23.5% above currentfor period ending 2026-07-31
Why this setup
Consensus revisions
EPS estimate $4.74 → $4.73 (-0.2% / 30d). 8 raised, 18 cut, 30 covering analysts.
Rating actions
0 upgrades, 0 downgrades / 30d, 19 maintained. 61% of analysts rate Buy.
Price target activity
13 PT revisions / 30d. Avg target 23.5% above current price.
Material events
0 positive, 0 negative / 30d.
Sector context
Intermediate · WeeklySector phase: consumer discretionary is in declining (~0.2 years in phase).
Management scorecard
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Long-term · 1–3 yr
Overall: strong
- Capital allocation
- strong
- Earnings discipline
- neutral
- Margin discipline
- strong
- Balance sheet
- strong
- Post-call reaction
- neutral
A guidance track record builds as the company issues and delivers on guidance.
How bumpy is the path
(risk while you hold it)Risk: how this stock moves
What a normal day, a bad day, and the worst of the last year would mean for a $10,000 position.
Intermediate · WeeklyLong-term · 1–3 yr
On a typical day, $10k can swing ±$108.
How much price usually moves either way.
On a bad day, this stock has moved -$232.
A rough but not unusual down day (about the 95th percentile).
In the worst 12 months, $10k could have lost $2,879.
Deepest peak-to-trough drop in the last year.
moderateas of 2026-06-12
Past results, not a forecast. Not investment advice.
What would change the read
(catalysts & re-read triggers)What changed
The most important moves since the prior daily snapshot.
Short-term · Daily
- No material changes since the prior snapshot.
No material changes since the prior snapshot.
as of 2026-06-12
What to watch next
Specific, dated things to watch for, each with what would confirm it and what would prove it wrong.
Intermediate · Weekly
- DownsideHigh confidenceQuartersactive 18d
Watch for operating margin staying below 12.4%
Why it matters: If the margin stays low, it shows cost control issues. This could hurt profits.
What confirms / what disproves
Confirms:The operating margin was below 12.4% for two quarters in a row.
Disproves:The operating margin was above 12.6% for two quarters in a row.
Management priorities
News catalysts
Recent news graded against this company's own objectives — whether it reinforces or challenges the thesis, and how confirmed it is.
No graded news catalysts for HD yet.
This sector is also watching
- Watch for consumer revenue growth dropping below median
- Watch for changes in unemployment claims on June 4
- Watch for retail sales data on June 17
What could change this view
Conditional scenarios: if X happens, the view would shift in this direction. These are not predictions.
Intermediate · Weekly
Upside triggers
- If sector bellwethers like LOW, FND, and LIVE keep beating earnings and guiding higher, the Consumer Discretionary sector momentum should keep lifting HD and other Consumer Discretionary names. Worth watching these names for early signals.
- If HD raises forward guidance on the next earnings call (currently REAFFIRMED as of 2026-05-19), that's a momentum boost. Street estimates typically follow guidance up and the stock tends to re-rate higher.
Downside triggers
- If HD cuts guidance on the next call (currently REAFFIRMED as of 2026-05-19), that's a meaningful negative. The Street tends to walk down estimates and the stock usually takes a leg lower.
- If sector bellwethers like LOW, FND, and LIVE start missing or guiding lower, the Consumer Discretionary tailwind helping HD and other Consumer Discretionary names could fade. Watch these names for early warning.
- If GDP growth slows materially from the current 2.6% (say, below 2%), it hits HD and other Consumer Discretionary names harder than the average stock, since the sector is growth-sensitive.
Recent events
(material 8-K / filing activity)Material updates
Recent SEC 8-K filings ranked by likely impact, confidence, and recency.
- 2026-05-1925d agoItem 2.02
Results of Operations and Financial Condition. On May 19, 2026, The Home Depot, Inc. (the “Company”) issued a press release, attached as Exhibit 99.1 and incorporated herein by reference, announcing the Company’s financial results for the fiscal quarter ended May 3, 2026. The information contained in this Item 2.02, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwis…
Earnings preannouncementneutral
Score history
Whether the overall read has been drifting up or down lately, and how it's changed since last week.
-4.5 vs last weeklatest as of 2026-06-13
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.