Home Depot Rose 2% Last Week. What’s Next for the Stock?

Nikko Henson3 minute read
Reviewed by: Thomas Richmond
Last updated Jan 18, 2026

Key Stats for Home Depot Stock

  • Past-Week Performance: 2%
  • 52-week Range: $326 to $427
  • Valuation Model Target Price: $416
  • Implied Upside: 9.5% over 2.0 years

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What Happened?

The Home Depot stock rose modestly over the past week, finishing near $380, following a wave of more constructive analyst commentary on the company.

Recent coverage highlighted renewed optimism from Wall Street analysts, who pointed to Home Depot’s ability to defend margins through efficiency gains even as home improvement demand remains uneven.

This shift in tone helped support buying interest after the stock had pulled back from prior highs.

The stock also drew attention after reports highlighted Home Depot’s expanded use of AI and technology to improve e-commerce personalization and operational efficiency.

While these initiatives are not expected to materially lift near-term revenue, they are viewed as supporting margin resilience, which has become a key focus for investors.

In addition, Home Depot’s dividend profile and inclusion in income-focused portfolios continued to attract yield-oriented demand.

Taken together, the stock’s modest gain appeared driven by analyst-driven reassessment and confidence in operational execution, rather than any new earnings release or major company-specific announcement.

Home Depot stock
Home Depot Guided Valuation Model

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Is Home Depot Fairly Valued Right Now?

Under valuation model assumptions, the stock is modeled using:

  • Revenue Growth (CAGR): 3.9%
  • Operating Margins: 13.0%
  • Exit P/E Multiple: 22.9x

Based on these inputs, the model estimates a target price of $416, implying about 9.5% total upside from the recent share price over the next 2.0 years, or roughly 4.5% annually.

Looking ahead, results will be influenced by trends in repair and maintenance spending, which has historically been more resilient than discretionary remodeling during slower housing cycles.

Performance from Pro customers remains a key earnings driver, as contractor-led projects generate higher average ticket sizes and more consistent demand than DIY activity.

Execution around inventory management, supply chain efficiency, and cost control will also play a role in determining whether Home Depot can maintain margins and convert stable sales into steady earnings and cash flow.

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  2. Operating Margins
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