With a market cap of $357.2 billion, The Home Depot, Inc. (HD) operates as a home improvement retailer in the United States and internationally. Headquartered in Atlanta, Georgia, the company sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products.

The home improvement retailer has underperformed the broader market over the past year and in 2025. HD’s stock prices have grown 6.5% over the past 52 weeks and have declined 6.8% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 8.6% gains over the past year and 4.3% decline on a YTD basis.

Narrowing the focus, HD has also underperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 11.5% surge over the past 52 weeks but has outperformed its 11.3% decline on a YTD basis.

Shares of Home Depot rose 2.8% on Feb. 25 after the company delivered strong Q4 2024 results, with revenue climbing 14.1% year-over-year to $39.7 billion, beating the consensus, aided by an extra operating week contributing about $2.5 billion. Adjusted EPS came in at $3.13, exceeding analysts’ estimates by 3% and rising 9.4% year-over-year.

For the current year, ending in January 2026, analysts expect HD’s EPS to decrease 1.5% year over year to $15.01. The company’s earnings surprise history is impressive. It surpassed the consensus estimate in each of the last four quarters.

HD stock has a consensus “Strong Buy” rating. Out of 36 analysts covering the stock, 26 rate it as a "Strong Buy," one recommends a “Moderate Buy,” eight say "Hold," and one recommends a “Strong Sell.”

The configuration is slightly less bullish compared to a month ago, when 27 analysts rated it a “Strong Buy.”

On May 6, Truist Financial Corporation (TFC) analyst Scot Ciccarelli announced an update on Home Depot, maintaining a "Buy" rating for the company and raising the price target from $291 to $393.

The mean price target of $423.34 suggests a 16.7% upside to HD’s current price levels. Moreover, the Street-high target of $475 suggests an impressive upside potential of 30.9%.