Key Stats for HD Stock
- Past-Week Performance: 1%
- 52-Week Range: $326 to $427
- Valuation Model Target Price: $472
- Implied Upside: 23% over 2 years
What Happened?
Home Depot stock ((HD) gained roughly 1% last week, remaining within its recent trading range near prior highs following mixed company and regulatory news.
Last week, Home Depot announced new AI tools for professionals amid investor scrutiny over surveillance data and immigration enforcement reports.
Management highlighted expanded Pro support initiatives, including AI material list building, financing flexibility, and streamlined order management, aimed at improving contractor efficiency.
Investors weighed long-term Pro investment benefits against governance and reputational concerns, limiting share movement as no immediate financial impact emerged.
Sector focus on data privacy and immigration enforcement continued, while Home Depot reported no operational, pricing, or customer demand changes.
Home Depot reported no changes to guidance, demand trends, or its long-term outlook following these announcements.
Is Home Depot Stock Fairly Valued Right Now?
Under the valuation model shown, the stock is modeled using:
- Revenue Growth: 4.9%
- Operating Margins: 13.1%
- Exit P/E Multiple: 24.9x
The valuation model assesses Home Depot through January 2028, with outcomes dependent on execution across growth, margins, and valuation assumptions.
The model assumes 4.9% revenue CAGR, 13.1% operating margins, and a 24.9x exit P/E multiple over the forecast period.
Based on these inputs, the model estimates a $471.58 target price, implying 22.9% total upside and a 10.7% annualized return.
Execution depends on steady Pro customer demand, pricing discipline, operational efficiency, and successful rollout of AI-driven tools and enhanced project support services.
Home Depot stock valuation reflects execution risk and sensitivity to housing, spending cycles, and margins, meaning outcomes may vary despite stable long-term fundamentals.
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