Home Depot Stock

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Home Depot Stock

Home Depot (HD) Stock: Should You Buy It?

Home Depot has thousands of stores in the USA. The Q2 2026 data shows Home Depot's revenue was $48 billion. This figure is enough to tell us that Home Depot has a leading position in the home improvement industry.

Despite having a strong position in its industry, Home Depot stock is down by 32% from its ATH. Does this mean a great opportunity for investors to buy Home Depot stock at a discount?Let's look closely at Home Depot to understand if it is a buy or not.

Home Depot Same-Store Sales Are Recovering

The underlying business of Home Depot has been under pressure for several years. Same-store sales declined during FY2023 and FY2024. In FY2025, the same-store sales turned positive and were recorded at 0.3%. According to management, the same-store sales can reach 1% in FY2026.

So, it is clear that the sales are recovering, but the gains are very muted. At the end of the day, Home Depot can't escape the macroeconomic environment.

Inflation in the USA is still above average. The Federal Reserve is also in no mood to lower rates. Instead, the US central bank has started to raise rates again.

In such an environment, consumers usually try to avoid spending on anything that's not necessary. Amidst high rates and high inflation, starting a home renovation is the last thing on anyone's mind. This is a big problem for Home Depot, which operates in the home improvement industry.

So, it is clear that things remain difficult for Home Depot. Demand remains under pressure, and most households don't want to spend on home upgrades and renovations.

Considering the macroeconomic backdrop, the safe choice is to avoid buying Home Depot stock. But once growth returns to Home Depot sales and revenue, you can then consider buying Home Depot stock.

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