| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 49 | 22.5x | 18.2x | Around median | |
Growth | 26 | 2.5% | 7.1% | Bottom tier | |
Quality | 83 | 22.6% | 4.5% | Top tier | |
Safety | 57 | 2.6x | 2.6x | Around median | |
Capital Return | 52 | 2.86% | 2.10% | Around median | |
Momentum | 25 | -15.1% | 2.9% | Bottom tier | |
Sentiment | 41 | 21 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
The Home Depot operates through a home improvement ecosystem that combines stores, digital platforms, and delivery services, selling building materials, tools, appliances, and maintenance, repair, garden, and storage products. The company serves individual DIY customers and professional Pro customers, while SRS and GMS expand the range of products and services available to builders, contractors, and commercial customers; 90% of stores closed at least one transaction through the SRS catalog during the twelve months ended August 18, 2026.
In the second quarter of fiscal 2027, reported on August 18, 2026, sales reached 47.9 billion dollars, up 5.7%, while comparable sales increased 1.7% overall and 1.3% in the United States. Gross margin was 33.7%, equivalent to approximate gross profit of 16.1 billion dollars, while operating margin was 14.3%, equivalent to approximate operating profit of 6.9 billion dollars. Diluted earnings per share were 4.79 dollars, or 4.92 dollars excluding intangible asset amortization, representing adjusted growth of 5.1%.
Performance was broad-based; 13 of 16 merchandise departments posted positive comparable sales, Pro outperformed DIY, and Canada, Mexico, and SRS performed above the company average. Comparable average ticket increased 2.8% and transaction count declined 1%, while transactions exceeding 1,000 dollars increased 2.4%. Sales through digital platforms rose 11%, marking the fifth consecutive quarter of double-digit year-over-year growth.
The average analyst price target is 378.62 dollars within a wide range of 340 to 425 dollars, with a consensus Buy rating, and the highest target is close to the top of the 52-week range of 426.75 dollars, while the average is approximately 11.3% below it. The price-to-earnings ratio of 24.1 times indicates a valuation that relies on execution quality and growth in Pro and the digital channel, but it appears more sensitive given fiscal 2026 earnings per share growth guidance of between zero and 4% and housing and cost pressures.
Figures in the text are as of 2026-08-25; the live price is shown at the top of the page.
Sales reached 47.9 billion dollars in the second quarter of fiscal 2027, up 5.7%, while comparable sales increased 1.7%. Diluted earnings per share were 4.79 dollars, while adjusted earnings per share were 4.92 dollars, up 5.1%. Gross margin was 33.7% and operating margin was 14.3%, with U.S. comparable sales growing 1.3%.
The company expects total sales growth of between 2.5% and 4.5% and comparable sales growth of between zero and 2% in fiscal 2026. It expects gross margin of approximately 33.1%, operating margin of between 12.4% and 12.6%, and adjusted operating margin of between 12.8% and 13%. It also expects diluted and adjusted earnings per share growth of between zero and 4%, with capital expenditures equivalent to approximately 2.5% of sales.
Sales through Home Depot’s digital platforms rose 11% year over year in the second quarter of fiscal 2027, marking the fifth consecutive quarter of double-digit growth. On August 18, 2026, the company announced the rollout of Express Delivery for tens of thousands of products within three hours or less, while most service orders arrived in less than one hour. More than 65% of in-stock product parcels were also arriving the same day or the next day, and Magic Apron receives millions of questions monthly.
Automated analysis for informational purposes only — not investment advice.
The Pro business posted positive comparable sales and outperformed DIY in the second quarter of fiscal 2027, with strength in portable power, lumber, pipes, fasteners, and concrete. SRS comparable sales exceeded the company average, and all its verticals were positive, while management is targeting mid-single-digit organic growth for SRS in fiscal 2026. Adding the SRS and GMS catalogs to QuoteCenter enables the sale of a broader assortment to builders and contractors, and 90% of stores closed a transaction through SRS during the twelve months ended August 2026.
Home Depot announced on August 12, 2026 that Ted Decker would take a temporary medical leave. The company said during its August 18, 2026 call that it looked forward to his return within a few months and would disclose any material developments as needed. During the leave, Ann-Marie Campbell oversees daily operations, while Richard McPhail manages financial operations in accordance with the announcement.
