Home Depot shares rose 6.5% on Wednesday, turning the stock positive year to date, as housing stocks rallied on hopes that the Democratic sweep could ease affordability pressures. The stock has gained more than 25% since the 10-year Treasury yield hit a two-decade high above 5.3% on Oct. 5, and is on pace for five straight positive weeks. The 30-year fixed mortgage rate rose to 7.5% in the week of Oct. 14, a level that has kept a lid on housing activity. The author says the rally needs lower rates or a stronger do-it-yourself market to continue, and Jim Cramer believes the election could bring tariff relief.
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- 1 Reason to Buy Home Depot Stock During This Historically Weak Housing Market
Home Depot (HD) stock is down about 11% over the past year as of Nov. 2, 2026, as the housing market has slowed sharply. The author argues that pent-up demand could benefit the company once housing rebounds, citing CFO Richard McPhail's comments that housing turnover has stayed near record lows for 4 years and that customers 'have the means to spend' but remain uncertain about inflation, interest rates and jobs. Professional contractors, who make up more than half of sales, have driven 8 straight quarters of same-store sales growth. The stock's forward P/E of 22.5 is slightly below its three-year average of 24.4, though earnings remain below their fiscal 2022 peak; the main risk is timing, while a dividend yield of about 2.8% offers some support.
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Home Depot trades at 22.3 times earnings, above Lowe's at 16.7 times and Amazon but below Walmart and Costco. Over its latest four quarters, Home Depot's 12.4% operating margin beats Lowe's 11.4%, yet its sales grew 2.5% versus Lowe's 8.2%. Its twelve-month operating margin is the lowest in ten years, as a $685 million tariff refund in the latest quarter was largely offset by rising fuel, energy and input costs and a product mix shift. Management held its fiscal 2026 forecast of 2.5% to 4.5% sales growth and a 12.4% to 12.6% operating margin. The article says the share price appears to assume Home Depot keeps its margin lead while sales at its own stores grow faster, and it flags comparable sales growth as the figure to check when the company reports again in November 2026.
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- Home Depot Has Raised Its Dividend 17 Straight Years. Here's What $10,000 Invested Pays Annually.
Home Depot (HD) has raised its annual dividend for 17 consecutive years, maintaining the streak through the COVID-19 recession, the 2022 downturn and the Fed's aggressive rate hikes. A $10,000 investment made 17 years ago would have grown to $121,000 and now pays about $3,300 in annual dividends, while a $10,000 investment today at the 2.73% forward yield would pay about $273 a year. Comparable sales and margins have declined since fiscal 2021, and fiscal 2026 guidance calls for 0%–2% comp growth, a 12.8%–13% adjusted operating margin and 0%–4% adjusted EPS growth. Over the past 12 months, Home Depot paid out 61% of free cash flow and 65% of EPS as dividends, and at $332 per share the stock trades at 22 times this year's earnings. The author says a weak housing market and macro headwinds could limit near-term gains, but considers it a reliable blue chip dividend stock for long-term investors.
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- Home Depot Is Down 24% From Its High. Here's Why I'd Hold It for a Decade.
Home Depot, a blue chip home improvement retailer with more than 2,000 stores worldwide, has high profit margins and a high return on capital, but its shares are down 11% over the past five years, well behind the S&P 500 amid a weak housing market. The author still believes the stock is worth holding for the next decade, citing four reasons: its position as one of two dominant players alongside Lowe's, a focus on professional contractors including the SRS Distribution acquisition, a leadership position that faces little disruption from Amazon because many products are bulky, and an expected housing rebound given an estimated shortage of around 4 million homes. The company forecast a 12.5% operating margin, versus a historical level closer to 15%, and had a 25.7% return on invested capital in 2025.
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