Should I buy Home Depot stock in 2025?

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At HelloSafe, our expert has been tracking the performance of Home Depot for over three years. Every month, over a million users in the US trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Home Depot.

What is Home Depot?

What is the price of Home Depot stock?

The price of Home Depot stock is rising this week. The current price is $370.29, with a 24-hour decline of 0.44% but a positive weekly change of 1.75%. Home Depot’s market capitalization stands at $368.4 billion, with an average three-month trading volume of 3.64 million shares. The price-to-earnings ratio is 25.14, offering a dividend yield of 2.51% and a stock beta of 1.02. This balance of steady income and moderate volatility enhances Home Depot’s profile for investors seeking both growth and stability.

Our Full Analysis of the Home Depot Stock

We have reviewed Home Depot’s latest financial results and the stock’s performance over the past three years. Multiple sources of analysis—ranging from financial indicators and technical signals to peer comparisons—have been synthesized through our proprietary algorithms. So, why might Home Depot stock once again become a strategic entry point into the retail and home improvement sector in 2025?

Recent performance and market context

Home Depot shares have navigated a dynamic environment over the past year, recently trading at $370.29 as of July 2025. After a solid 10.98% rally over twelve months, the stock has shown resilience, even absorbing a modest -0.44% intraday move and a healthy 1.75% gain this week. The company’s Q1 results outperformed on revenue, hitting $39.86 billion versus $39.24 billion expected, driven by robust demand in both consumer and trade professional segments. The US home improvement retail market remains on a growth trajectory, with the Leading Indicator of Remodeling Activity (LIRA) projecting sector expansion of 2.5% to $526 billion by early 2026—a boon for Home Depot’s top line and competitive positioning. The sector’s positive backdrop, coupled with a US consumer base that remains active in home investments, further supports optimism surrounding the stock.

On the competitive front, Home Depot has continued to outperform with strategic moves such as the $5.5 billion acquisition of GMS Inc. and subsidiary SRS Distribution. This acquisition extends Home Depot’s footprint in the professional construction materials segment, broadening its B2B network to over 1,200 locations and sharpening its advantage over competitors. Institutional support remains robust, with 38 analysts covering the stock, a consensus “Buy” rating, and a 12-month price target of $418.64—providing confidence in ongoing capital markets endorsement.

Technical analysis

The technical landscape for Home Depot shares points decisively toward further upside. The stock is showing robust momentum, with a 14-day RSI at 56.35—signaling steady accumulation but not yet overbought territory. The moving average convergence divergence (MACD) delivers a positive reading (0.62), reinforcing the short- to medium-term bullish bias in the stock. Key moving averages also provide a constructive picture, with the price currently sitting above the SMA20 (+2.17%) and SMA50 (+1.33%), suggesting strong medium-term support.

Critical technical support resides at $347, with major resistance near $383; a breakout above this latter level could herald the next leg higher. Additional confidence comes from the stock’s placement within a 52-week price range of $326.31 (low) to $439.37 (high), presenting a compelling risk-reward scenario especially for investors keen to target entry points before a potential bullish reversal. With moderate volatility (beta: 1.02), Home Depot offers both stability and room for performance acceleration.

Fundamental analysis

Home Depot’s fundamentals continue to inspire confidence among both professional and retail investors. Revenue for Q1 2025 not only surpassed consensus expectations by 1.6%, but also achieved an impressive 9.4% jump year-over-year—a testament to the company’s operational excellence and immense consumer reach. EBITDA stands at a robust $25.4 billion (TTM), with net income for the most recent quarter at $3.43 billion. While quarterly EPS came in just under consensus ($3.56 versus $3.59 anticipated), the overall earnings trajectory remains strong thanks to disciplined margin management and sustained cost controls.

The price-to-earnings (P/E) ratio at 25.14 reflects justified optimism for future earnings and compares favorably within the large-cap retail sector, considering Home Depot’s premium brand, nationwide leadership, and innovation track record. The consistent 2.51% dividend yield is an attractive feature for investors prioritizing income, made even stronger by the company’s established policy of steady dividend growth.

Strategically, the acquisition of GMS enhances Home Depot’s reach in the $475 billion professional market and strengthens synergies with trade-focused customers—a critical new growth engine. Additionally, ongoing investments in digital transformation, supply chain modernization, and omnichannel retailing reinforce Home Depot’s resilience and future readiness, ensuring it remains a key disruptor in the home improvement ecosystem.

Volume and liquidity

Sustained high trading volume—averaging 3.64 million shares daily—underscores the market’s pronounced interest and signals deep liquidity for investors entering or exiting positions. Home Depot’s institutional float is significant, with upwards of 994 million shares outstanding and 72.43% held by large investors. This heavy institutional presence not only supports dynamic valuation but also promotes price stability, reducing the risk of sharp, liquidity-driven moves and ensuring healthy market functioning.

Catalysts and positive outlook

Several near- and mid-term catalysts bolster the case for a positive outlook on Home Depot’s stock. Most notably, the integration of GMS/SRS Distribution transforms the company’s market scope and scale, granting immediate access to a wider B2B customer base and a considerably enhanced national logistics footprint. Modernization of the supply chain is also expected to deliver incremental efficiencies and margin gains in upcoming quarters. In parallel, the acceleration of the digital platform—including AI-driven inventory management and e-commerce upgrades—positions the company to capture growth from evolving consumer and trade professional shopping behaviors.

Further, the expected rebound in the US home renovation market, as signaled by LIRA’s guidance, is likely to underpin continued revenue growth and further top-line surprises. ESG leadership, demonstrated through sustainability initiatives in sourcing and operations, adds an additional layer of appeal—particularly for institutional investors attentive to responsible investing themes.

The combination of strong macroeconomic drivers (resilient US consumer, housing market recovery, and ongoing government incentives for energy-efficient renovations) and company-specific innovations sets a favorable context for continued share price appreciation.

Investment strategies

From a strategic standpoint, Home Depot stock presents a variety of attractive entry points for investors across time horizons:

• Short-term: Technical support around $347 offers a well-defined base for tactical positions, while the imminent Q2 earnings and ongoing integration of GMS act as fresh potential catalysts for a near-term uplift.
• Medium-term: The current price, still below the consensus target of $418.64, implies a significant window for appreciation as Home Depot capitalizes on synergies, sector growth, and operating leverage. Investors seeking to capture the full impact of new B2B markets and enhanced digital commerce may see notable returns as these strategies mature.
• Long-term: For those investing with a multi-year perspective, Home Depot’s inherent strengths—including dominant US market share, proven management, and robust cash flow—justify considering accumulation on any technical lows or consolidation periods. The regular dividend, disciplined reinvestment, and brand resilience ensure that Home Depot stands out as a core holding in a diversified portfolio.

Regardless of the preferred entry timeframe, the stock’s moderate beta, solid support levels, and recurring positive analyst sentiment collectively reinforce an increasingly favorable set-up for buyers keen to align with US consumer recovery and ongoing industry innovation.

Is it the right time to buy Home Depot?

Bringing together its impressive revenue growth, accretive professional market acquisitions, attractive valuation, and strong institutional backing, Home Depot trades with an enviable mix of quality and upside potential. The technical picture is constructive, with signals tilting toward a new bullish phase, while fundamental trends and catalysts remain robust and supportive.

The momentum behind Home Depot, fueled by digital innovation, supply chain modernization, and expanding customer bases, justifies a renewed focus on this sector leader. The stock’s potential for further appreciation, consistent returns, and growing dividends all suggest that Home Depot seems to represent an excellent opportunity for investors seeking stability paired with clear growth drivers in 2025.

Home Depot exemplifies the sort of large-cap resilience and adaptability that historically rewards patient, forward-thinking investors, firmly positioning itself as a compelling choice for those looking to benefit from the next chapter in the US retail and home improvement cycle.

How to Buy Home Depot Stock in the US

Buying Home Depot stock online is straightforward and secure when using a regulated US broker. Investors generally choose between two main options: spot (cash) buying, which gives you direct ownership of shares, or trading via Contracts for Difference (CFDs), which allows for leveraged speculation on price movements. Both methods offer advantages for different investor profiles. For a detailed comparison of leading brokers and their fees, see our comparison section further down the page.

Spot buying

A cash purchase of Home Depot stock means you buy and own actual shares, benefiting directly from price appreciation and dividends. Brokers typically charge a fixed commission per order, often around $5 in the US.

Gain scenario

If the Home Depot share price is $370.29, you can buy around 2 shares with a $1,000 stake, including a brokerage fee of around $5.

If the share price rises by 10%, your shares are now worth $1,100.

Result: +$100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD (Contract for Difference) trading on Home Depot shares lets you speculate on price movements without owning the underlying stock. With CFDs, you pay a spread (the difference between buy/sell prices) and potentially overnight financing charges if you hold positions longer than a day.

Gain scenario

You open a CFD position on Home Depot shares with 5x leverage, using a $1,000 stake.

This gives you a market exposure of $5,000.

If the stock rises by 8%, your position gains 8% × 5 = 40%.

Result: +$400 gain, on a bet of $1,000 (excluding fees).

Final advice

Before buying Home Depot stock, be sure to compare brokers’ commissions, spreads, and other key conditions. The best method—cash or CFD—depends on your investment goals, whether you prefer direct ownership or seek potential gains with leverage. For more details, refer to the broker comparison available further down this page.

7 Tips for Buying Home Depot Stock

The latest news about Home Depot

Home Depot shares rose 1.75% this week, outperforming the sector average. Over the last seven days, Home Depot's stock price increased to $370.29, notably ahead of home improvement sector peers. This positive movement reflects strong investor confidence following robust quarterly revenue results and a moderate improvement in consumer sentiment within the US housing market.

Home Depot completed its $5.5 billion acquisition of GMS, expanding its B2B distribution network. The integration of GMS Inc. via its SRS Distribution segment gives Home Depot a significant strategic boost, adding over 1,200 locations nationwide. This expansion solidifies the company's leadership in professional building materials distribution, directly supporting future revenue growth and broader service offerings for US contractors.

US housing and renovation market projections turned more optimistic, supporting Home Depot’s growth outlook. Industry experts have raised forecasts for home renovation spending in the US, now anticipated to grow 2.5% to $526 billion by early 2026. This constructive environment benefits Home Depot directly, given its dominant position and ongoing modernization of supply chains, which foster faster, more efficient service to American consumers.

Home Depot’s dividend policy and strong cash flow earn renewed positive analyst attention. The company maintained its quarterly dividend at $2.30 per share, with a yield of 2.51%. Major analysts reiterate their buy consensus, citing Home Depot's ability to sustain robust cash generation, dependable shareholder payouts, and financial discipline, which together reinforce its attractiveness to income-focused US investors.

Recent quarterly revenue exceeded expectations, lifting confidence among institutional investors. Home Depot reported Q1 2025 revenue of $39.86 billion, beating market estimates by 1.6%. This solid result, coupled with a large and stable institutional shareholder base, including leading US asset managers, further validates the stock's status as a reliable cornerstone in American investment portfolios.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.