Should I buy Home Depot stock in 2025?

Why trust HelloSafe?

At HelloSafe, our expert has been monitoring Home Depot’s stock performance for over three years. Every month, hundreds of thousands of users in the United States rely on us to break down market trends and highlight the best investment opportunities. Our analyses are offered 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?

How much is Home Depot stock?

The price of Home Depot stock is declining this week. As of now, the HD share trades at $358.30, reflecting a 24-hour decrease of $2.19 (-0.61%) and a weekly change of -0.37%. The company’s market capitalization stands at $356.12 billion, with an average three-month daily volume of 3.75 million shares. Home Depot’s current P/E ratio is 24.03, offering a dividend yield of 2.57%, and the stock’s beta is 1.09.

Investors should consider that while the stock’s recent performance has been subdued, its solid fundamentals and strategic focus may enhance long-term potential despite some short-term volatility.

Our full analysis on Home Depot stock

Having thoroughly examined Home Depot’s latest financials, stock action over the last three years, and incorporating a multi-factor analysis of its competitive landscape and sector dynamics via our proprietary algorithms, an intriguing thesis emerges. The confluence of fundamental growth, resilient market leadership, and key technical signals places Home Depot in a notably favorable light. So, why might Home Depot stock once again become a strategic entry point into the home improvement and retail sector in 2025?

Recent Performance and Market Context

Home Depot (NYSE: HD) has demonstrated considerable resilience in the face of dynamic market conditions. The stock is currently priced at $358.30, with a market capitalization of $356.12 billion—positioning it among the largest and most recognized consumer discretionary leaders on the NYSE. While recent months have seen the share price consolidate, marked by a 6-month decline of -8.73%, the stock remains up 7.93% year-over-year, underlining its capacity for sustained outperformance.

The broader sector context also merits attention. As home improvement spending shows early signs of stabilizing, and with consumer sentiment gradually turning positive amid expectations of moderating interest rates, Home Depot’s core business is well-poised for a cyclical upturn. Recent events have reinforced this optimism: a solid Q4 2024 earnings beat, a further dividend increase to $2.30 per share, and the accretive acquisition of SRS Distribution signal proactive management and a focus on strategic growth levers.

In sum, despite short-term uncertainty and sector headwinds, Home Depot’s proven ability to generate steady cash flows and adapt to evolving market trends justifies renewed confidence—a trait especially valuable given the stock’s historical role as a bellwether for housing and consumer cycles.

Technical Analysis

• Relative Strength Index (RSI 14) at 51.86 signals a state of neutrality, meaning the stock is neither overbought nor oversold. This is a constructive setup for new accumulation, particularly as it limits immediate downside risk.
• MACD (-1.47) indicates lingering short-term bearishness. However, such a signal—when coupled with stabilization above key supports—often precedes sharp mean reversion moves when confirmed by a bullish macro or fundamental backdrop.
• Moving Averages highlight mixed momentum: the stock trades above its 20-day SMA ($354.20), favoring near-term bullishness, though it remains below its 50, 100, and 200-day SMAs ($363.99, $384.02, and $382.87 respectively). This consolidation phase, especially as HD hovers above a firm support range ($351.14–$357.29), often precedes significant directional moves.
• Support and Resistance: The $342.40–$357.29 band provides substantial technical cushion, while resistance zones at $358.31–$368.00 constitute the next critical hurdles. The absence of recent golden/death cross signals and a broad consolidation structure further suggest the groundwork is being laid for potential bullish rotation.

Taken together, Home Depot’s technical framework appears to offer a calculated entry window, particularly for those seeking to build positions ahead of the next leg higher.

Fundamental Analysis

• Revenue Growth: Fiscal 2024 revenue reached $159.5 billion, up 4.5% year-over-year, with Q4 2024 alone up a striking 14.1% compared to the prior year.
• Profitability Metrics: The company delivered a robust net income of $3.0 billion for the latest quarter and $14.8 billion for the fiscal year, with an adjusted operating margin of 13.8%—demonstrating adept cost and margin management despite competitive pricing and inflationary pressures.
• Strategic Expansion: The SRS Distribution acquisition significantly enhances Home Depot’s reach in the professional contractor market—an increasingly important, higher-margin customer segment. This strategic move aligns with Home Depot’s vision to fortify professional sales, diversify revenues, and cushion cyclical swings in DIY demand.
• Valuation: With a trailing P/E of 24.03 and a forward P/E of 23.87, HD trades at a premium to the broad retail sector—but this premium appears justified by its brand value, scale, and cash-generation prowess. Coupled with a 2.57% dividend yield ($9.20 annual dividend), Home Depot’s valuation appeals to both growth and income-oriented profiles.
• Structural Strength: Home Depot’s formidable market share, renowned brand, and innovation in omnichannel retail (integrating e-commerce with brick & mortar) confer unique competitive moats not easily replicated by rivals—be they traditional (Lowe’s) or e-commerce-centric.

On balance, the company’s steady top-line expansion, reinforced by strategic investments and a proven ability to navigate market headwinds, strongly support the view that its fundamentals justify renewed interest.

Volume and Liquidity

Trading in Home Depot remains deep and highly liquid, which can be interpreted as an ongoing testament to institutional and retail investor confidence:

• Average Daily Volume: 3.75 million shares—consistently robust, indicating sustained market interest and efficient price discovery.
• Float and Market Depth: With a large float and diversified shareholder base, Home Depot’s valuation remains dynamically responsive to both macro and company-specific catalysts. This liquidity profile facilitates both tactical trading and long-term accumulation strategies without undue slippage risk.

Importantly, such high liquidity underpins reliable trade execution and positions HD as a preferred canvas for portfolio rebalancing, options strategies, and systematic accumulation programs.

Catalysts and Positive Outlook

• Professional Market Expansion: The SRS Distribution acquisition materially broadens access to high-value contractor customers, staking out new growth territory at a time when sector margins are under pressure.
• Technology & Supply Chain Investment: Ongoing investments are upgrading the customer experience, streamlining fulfillment, and building operational resilience—crucial differentiators as omnichannel retailing becomes the norm.
• Sector Tailwinds: With U.S. home improvement spending expected to stabilize or recover as mortgage rates ease, Home Depot stands as a chief beneficiary of renewed consumer and construction activity.
• ESG & Sustainability Initiatives: Home Depot’s increasing attention to environmental, social, and governance (ESG) programs positions the company favorably in institutional portfolios and aligns with the preferences of a broader investor base.
• Dividend Growth Philosophy: The latest 2.2% quarterly dividend increase underscores management's confidence in long-term earnings power, and the current yield remains attractive against both peers and market averages.
• Analyst Sentiment and Targets: The consensus price target stands at $427.98 (+19% upside from current levels), with high conviction among covering analysts. Some models anticipate even further gains toward the $465.79 area in a bullish scenario.

With these dynamics in play, the next quarters could see Home Depot leverage both cyclical recovery and strategic investments for above-market returns.

Investment Strategies

A variety of approaches may be considered given Home Depot’s evolving technical posture and supportive fundamentals:

• Short-Term Perspective:
• Technically, the stock is consolidating above a key support band. A decisive break and sustain above $368.00 could signal resumption of the longer-term uptrend.
• For active traders, opportunities may be found in tactical positioning around earnings releases, dividend dates, and the closing of the SRS Distribution acquisition.
• Medium-Term Perspective:
• Investors seeking entry ahead of sector tailwinds may identify the current $350–$360 range as an optimal base for staggered accumulation, with a focus on upcoming sales trends and macro shifts such as Federal Reserve rate policy.
• The expected resumption of growth in home improvement and professional construction markets further strengthens the case for medium-term holding.
• Long-Term Perspective:
• For strategic, buy-and-hold portfolios, Home Depot remains a cornerstone asset. The company’s scale, innovation, dividend discipline, and proven management combine for a compelling long-term compounder within consumer discretionary.
• The recent dip from 52-week highs and current consolidation phase may offer a rare entry window, particularly for those seeking to capitalize on multi-year sector recovery and continued internal reinvestment.

Across horizons, entry during consolidation—especially above stout technical support and below all-time highs—often delivers asymmetric risk/reward.

Is It the Right Time to Buy Home Depot?

In summary, Home Depot showcases a robust combination of strengths: best-in-class fundamentals, resilient profit generation, significant strategic expansion through M&A, a shareholder-friendly dividend policy, and a liquidity profile second to none. The technical setup, while mixed, reveals a stock that is consolidating above support with multiple upside catalysts on the near-term horizon.

With the sector outlook firming and key investment themes—professional contractor focus, technology enablement, supply chain robustness—gaining momentum, Home Depot seems to represent an excellent opportunity for investors seeking growth, income, and quality in a single package. While no equity investment is without risks, the current landscape points toward an auspicious entry point for those looking to gain—or add to—exposure in a sector leader preparing for its next phase of expansion.

Against this backdrop, Home Depot’s unique confluence of value, growth potential, and strategic agility may indeed mark the present moment as a standout opportunity—one that deserves careful consideration as a foundational component of any forward-looking equity portfolio.

How to buy Home Depot stock in United States?

Buying Home Depot (HD) stock online is straightforward and secure when you use a regulated U.S. brokerage platform. Investors can typically choose between two main methods: classic “spot” buying, where you own the actual shares, and trading via Contracts for Difference (CFDs), which allows you to speculate on the stock’s price movements—both upward and downward—without owning the shares themselves. Each method offers distinct advantages, depending on your strategy and risk appetite. To help you get started, we've compared the leading brokers and their offers further down the page.

Spot Buying

A cash purchase, or spot buying, means that you buy Home Depot shares directly on the New York Stock Exchange through a regulated U.S. broker. You'll become a shareholder, entitled to dividends and potential price appreciation. Typical fees for U.S.-listed stocks usually involve a flat commission per order—often around $0 to $5 at major platforms.

Important information

Example:
If the current price of Home Depot is $358.30 per share, with a $1,000 investment, you could buy approximately 2 shares (for $716.60), plus a typical $5 commission. This leaves about $278, which wouldn't buy a whole additional share, so you'd retain it as cash or use it for other investments.

✔️ Gain scenario:
If the Home Depot share price rises by 10%, your shares are worth about $788.26.
Result: That’s a gross gain of $71.66, or approximately +10% on your share investment.

Trading via CFD

CFD trading lets you speculate on Home Depot’s price without directly owning the underlying shares. It is often used for shorter-term strategies and offers advantages like leverage but also involves more risk. Instead of a fixed commission, you’ll typically pay the “spread” (the difference between buy and sell prices) and overnight financing costs if you hold the position beyond one day.

Important information

Example:
You open a CFD position on Home Depot with $1,000 and apply 5x leverage, giving you exposure to $5,000 worth of stock.

✔️ Gain scenario:
If Home Depot’s price increases by 8%, your position return is 8% × 5 = 40%.
Result: That’s a $400 gain on your $1,000 deposit (excluding fees such as the spread and overnight interest).

Final Advice

Before investing, it’s wise to compare brokers’ fees, platforms, and account conditions using a broker comparison tool found below. The decision between spot buying and CFD trading depends on your investment goals: consider whether you seek long-term ownership with dividend benefits or prefer the flexibility and leverage of active trading. Always align your chosen method with your risk tolerance and financial objectives.

Application

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51% of CFD accounts lose money. You will never lose more than your investment.

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IG

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74% of CFD accounts lose money. Your capital is at risk.

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Our 7 tips for buying Home Depot stock

The latest news about Home Depot

Home Depot reported robust Q4 2024 results, exceeding analyst expectations for both revenue and earnings per share. The company delivered $39.7 billion in revenue for the quarter, marking a 14.1% year-over-year increase, and achieved comparable sales growth of 1.3% in the U.S.—a vital market for Home Depot. Net earnings reached $3.0 billion, with EPS rising to $3.02 from $2.82 a year prior, while the adjusted EPS of $3.13 significantly outperformed consensus forecasts. These results demonstrated Home Depot’s solid execution in its core U.S. market, despite a challenging macroeconomic and housing environment.

The acquisition of SRS Distribution was finalized, strengthening Home Depot's reach in the professional contractor segment throughout the U.S. This strategic move significantly bolsters the company's capabilities and offerings for professional customers, who represent a fast-growing and higher-margin segment in the home improvement industry. The SRS integration is expected to enhance Home Depot’s value proposition, improve its service for commercial clients, and contribute positively to its revenue stream in coming quarters.

Home Depot increased its quarterly dividend by 2.2% to $2.30 per share in February 2025, signaling continued shareholder confidence and income appeal. This marks another consecutive year of dividend growth for the company, with a current yield at 2.57%, providing an attractive return for income-focused investors. The steady payout growth, backed by solid earnings and cash flow generation, underscores management’s dedication to returning value to shareholders, which has been especially well received in the U.S. investment community.

The company’s fiscal 2025 guidance projects approximately 2.8% sales growth and 1.0% comparable sales growth, supported by improving U.S. momentum and ongoing investments. Home Depot’s projections reflect an optimistic outlook for the U.S. home improvement market, anticipating stabilization in interest rates and consumer demand recovery. Continued investments in supply chain modernization, technology, and interconnected retail experiences are positioned to drive operational efficiency and sustain competitive leadership, with analysts maintaining a consensus price target well above the current share price.

Recent technical analysis shows the stock stabilizing in a consolidation pattern, supported by strong fundamentals and a neutral sentiment tilt. While near-term technical indicators are mixed—price is above the 20-day moving average but below longer-term averages—the relative strength index at 51.86 and the stock’s resilience above key support zones suggest an underlying stability. With no overbought conditions and analysts’ consensus price targets indicating significant upside, Home Depot’s share performance appears relatively well-buffered for U.S. investors seeking long-term exposure to the home improvement sector.

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.