Melius Research Upgrades Home Depot (NYSE:HD) to “Strong-Buy”

Home Depot (NYSE:HD) was upgraded by research analysts at Melius Research to a “strong-buy” rating in a note issued to investors on Tuesday, Zacks reports.

Several other analysts have also issued reports on HD. KeyCorp restated a “sector weight” rating on shares of Home Depot in a research note on Wednesday, August 19th. TD Cowen reiterated a “buy” rating on shares of Home Depot in a research note on Monday, August 10th. Wolfe Research cut Home Depot from an “outperform” rating to a “peer perform” rating in a research note on Tuesday, June 23rd. Mizuho upped their price objective on shares of Home Depot from $385.00 to $390.00 and gave the company an “outperform” rating in a report on Wednesday, August 19th. Finally, UBS Group reiterated a “buy” rating on shares of Home Depot in a research report on Thursday, September 17th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Home Depot currently has an average rating of “Moderate Buy” and an average price target of $375.93.

Home Depot Trading Up 3.5%

Shares of HD stock opened at $295.64 on Tuesday. The company has a 50 day moving average of $318.34 and a 200-day moving average of $325.42. The company has a quick ratio of 0.31, a current ratio of 1.08 and a debt-to-equity ratio of 2.64. Home Depot has a 12-month low of $277.15 and a 12-month high of $397.63. The firm has a market cap of $294.96 billion, a P/E ratio of 20.69, a PEG ratio of 2.03 and a beta of 1.00.

Home Depot (NYSE:HD) last posted its quarterly earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 EPS for the quarter, topping analysts’ consensus estimates of $4.73 by $0.19. Home Depot had a net margin of 8.41% and a return on equity of 106.42%. The company had revenue of $47.86 billion for the quarter, compared to analysts’ expectations of $47.24 billion. During the same quarter in the previous year, the firm posted $4.68 EPS. Home Depot’s revenue was up 5.7% on a year-over-year basis. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. Sell-side analysts anticipate that Home Depot will post 15.01 earnings per share for the current year.

Insider Buying and Selling

In other news, CFO Richard V. Mcphail sold 5,989 shares of the company’s stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $348.40, for a total transaction of $2,086,567.60. Following the sale, the chief financial officer directly owned 48,104 shares in the company, valued at $16,759,433.60. This represents a 11.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, EVP Michael F. Rowe sold 710 shares of the stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $336.76, for a total transaction of $239,099.60. Following the completion of the sale, the executive vice president directly owned 6,838 shares in the company, valued at approximately $2,302,764.88. The trade was a 9.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 9,829 shares of company stock worth $3,339,314. Company insiders own 0.08% of the company’s stock.

Hedge Funds Weigh In On Home Depot

Large investors have recently modified their holdings of the company. BlackRock Inc. bought a new position in Home Depot in the 2nd quarter valued at $28,771,247,000. State Street Corp increased its holdings in shares of Home Depot by 1.1% in the second quarter. State Street Corp now owns 47,175,026 shares of the home improvement retailer’s stock worth $16,637,688,000 after purchasing an additional 499,168 shares during the period. Bank of America Corp DE bought a new position in shares of Home Depot in the second quarter worth $5,780,468,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in shares of Home Depot by 1.9% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 8,040,796 shares of the home improvement retailer’s stock worth $2,766,838,000 after buying an additional 152,902 shares in the last quarter. Finally, Bank of New York Mellon Corp purchased a new stake in shares of Home Depot in the second quarter worth $2,777,396,000. 70.86% of the stock is currently owned by institutional investors.

Key Home Depot News

Here are the key news stories impacting Home Depot this week:

• Positive Sentiment: Traders purchased 33,592 HD call options, roughly 54% above the average daily volume. The activity may indicate increased bullish speculation or hedging demand, although options flow does not guarantee future gains.
• Positive Sentiment: Melius Research initiated coverage with a Buy rating and a $397 price target, implying substantial upside from recent trading levels. The firm’s constructive view of home-improvement retailers helped support the stock. Home Depot Stock Is Down 17% in 2026. Here’s Why Melius Still Sees $397
• Positive Sentiment: Analysts have reportedly raised earnings forecasts ahead of Home Depot’s results, reinforcing expectations that improving business trends could help the retailer recover from its 2026 decline. Should Analyst Upgrades to Earnings Forecasts Require Action From Home Depot Investors?
• Positive Sentiment: Home Depot’s roughly 5.4% free-cash-flow yield is above the S&P 500 median, making the shares appear attractively valued if housing and consumer demand stabilize. Why Is Everyone Ignoring Home Depot Stock’s High Cash Yield?
• Neutral Sentiment: The company announced its 2026 Innovation Award winners, highlighting products designed to simplify DIY and professional renovation projects. The announcement supports Home Depot’s merchandising strategy but is unlikely to materially change near-term earnings. The Home Depot Announces 2026 Innovation Award Winners
• Negative Sentiment: Technical analysts warned that the area near $288 could act as resistance; failure to reclaim it convincingly could renew the downtrend. Home Depot is also trading below its key moving averages after a significant year-to-date decline. Stock of the Day: Will Home Depot Continue to Trend Lower?
• Negative Sentiment: Weakness across consumer discretionary and staples stocks, combined with investor concerns that high interest rates are limiting housing activity, continues to weigh on the broader backdrop for HD. Jim Cramer Sees Little Relief for Home Depot Until Rates Fall

About Home Depot

The Home Depot, Inc (NYSE: HD) is a home improvement retailer serving do-it-yourself customers, professional contractors, and other trade professionals. The company sells building materials, appliances, décor, hardware, plumbing and electrical supplies, tools, outdoor products, and lawn and garden merchandise through its retail stores and digital platforms.

Home Depot also provides services such as installation, equipment rental, delivery, and project support. Its professional customer offerings include job-lot quantities, delivery solutions, credit services, and tools designed to help contractors manage construction and renovation projects.