Home Depot Inc. "We Recommend Maintaining Engagement with This Stock" (Buy)

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Home Depot Inc. "We Recommend Maintaining Engagement with This Stock" (Buy)

Global Research

19 May 2026ab

Home Depot Inc. Equities

AmericasWe Recommend Maintaining Engagement with

This Stock Retailers, Broadline

12-month rating Buy

12m price target US$430.00HD's 1Q print showed a continuation of steady underlying demand

Prior : US$450.00

Overall, we think HD's 1Q print provided more evidence to support than dispute the

constructive case on the company's stock. In essence, this thesis says that the less Price (19 May 2026) US$302.44

discretionary maintenance and repair element of home improvement demand can RIC: HD.N BBG: HD US

sustain the category as the more discretionary project related spend eventually gains

more momentum. All the while, Home Depot should accelerate its market share by Trading data and key metrics

building and enhancing the broad, multi-faceted pro and consumer distribution 52-wk range US$423.42-297.51

platform it is building. The combination of these forces, along with a semi-fixed cost Market cap. US$301b

structure and gradual redeployment of capital back to shareholders, should create a Shares o/s 994m (COM)

handsome earnings growth profile. With the shares trading around ~20x CY'26E EPS, Free float 100%

which is a discount to the broader market, this profile is awfully appealing, in our view. Avg. daily volume ('000) 1,160

Avg. daily value (m) US$389.1

In the case of 1Q, the key points of evidence included a comp that was slightly positive at Common s/h equity (01/27E) US$18.7b

0.6%, which was a modest 20bp acceleration versus last quarter (the comp increased P/BV (01/27E) 15.9x

0.4% in the U.S.). This result reflects stable underlying demand, consistent with what Net debt to EBITDA (01/27E) 1.9x

HD experienced throughout last year.