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

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

A number of other research firms have also recently issued reports on HD. Stifel Nicolaus lifted their price objective on Home Depot from $320.00 to $340.00 and gave the company a “hold” rating in a research report on Monday, August 17th. Wolfe Research downgraded shares of Home Depot from an “outperform” rating to a “peer perform” rating in a report on Tuesday, June 23rd. DA Davidson reaffirmed a “buy” rating and issued a $377.00 target price on shares of Home Depot in a report on Wednesday, August 19th. Royal Bank Of Canada dropped their price objective on shares of Home Depot from $343.00 to $342.00 and set a “sector perform” rating on the stock in a report on Wednesday, August 19th. Finally, Wells Fargo & Company lifted their price target on shares of Home Depot from $360.00 to $400.00 and gave the stock an “overweight” rating in a research note on Tuesday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $375.93.

Home Depot Trading Up 3.5%

Home Depot stock opened at $295.64 on Tuesday. The company has a 50 day moving average price of $318.34 and a 200 day moving average price of $325.42. The firm has a market capitalization of $294.96 billion, a price-to-earnings ratio of 20.69, a P/E/G ratio of 2.03 and a beta of 1.00. Home Depot has a 52 week low of $277.15 and a 52 week high of $397.63. The company has a debt-to-equity ratio of 2.64, a quick ratio of 0.31 and a current ratio of 1.08.

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

Insider Activity

In related news, EVP Michael F. Rowe sold 710 shares of the firm’s stock in a transaction on 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 of the company’s stock, valued at $2,302,764.88. This trade represents a 9.41% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Richard V. Mcphail sold 5,989 shares of the firm’s stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $348.40, for a total value of $2,086,567.60. Following the sale, the chief financial officer directly owned 48,104 shares of the company’s stock, valued at $16,759,433.60. This represents a 11.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 9,829 shares of company stock worth $3,339,314. 0.08% of the stock is currently owned by insiders.

Institutional Trading of Home Depot

Large investors have recently made changes to their positions in the business. Bank of Nova Scotia bought a new position in Home Depot in the second quarter valued at $118,723,000. Gator Capital Management LLC bought a new stake in Home Depot during the 4th quarter worth about $3,693,000. AFT Forsyth & Company Inc. acquired a new position in shares of Home Depot during the 2nd quarter worth about $1,896,000. Field & Main Bank bought a new position in shares of Home Depot in the 2nd quarter valued at about $6,286,000. Finally, State Street Corp grew its holdings in shares of Home Depot by 1.1% in the 2nd quarter. State Street Corp now owns 47,175,026 shares of the home improvement retailer’s stock valued at $16,637,688,000 after acquiring an additional 499,168 shares in the last quarter. Institutional investors own 70.86% of the company’s stock.

Key Stories Impacting Home Depot

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

Home Depot Company Profile

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.