Key Points
-
Home Depot reports Aug. 18, with Wall Street expecting modest revenue and earnings growth.
-
The best reason to buy the stock now is a roughly $700 billion Pro opportunity that’s already gaining traction.
-
Following the recent dip, the stock offers an attractive 2.6% dividend yield.
- 10 stocks we like better than Home Depot ›
Home Depot (NYSE: HD) will report second-quarter earnings on Aug. 18. Analysts expect revenue of $47.2 billion, up about 4% from the year-ago quarter. Adjusted earnings per share are projected at $4.73, slightly higher than last year’s $4.68.
One compelling reason to buy the stock now is Home Depot’s roughly $700 billion opportunity in the Pro market — and it’s already translating into results.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: The Motley Fool.
Home Depot is building a hard-to-replicate business serving professional contractors, positioning it for meaningful growth when the housing market recovers.
The company acquired Mingledorff’s, expanding Home Depot’s reach in heating, ventilation, and air conditioning (HVAC) equipment. It can unlock substantial value from the deal through its SRS distribution network, which includes more than 1,300 branches.
That Pro exposure could become a major growth engine as the housing market turns the corner. Early signs are encouraging; in the first quarter, Pro posted better comparable sales than do-it-yourself customers.
Meanwhile, Home Depot’s core business remained resilient despite a weak operating environment. First-quarter sales rose 4.8% year over year. With the stock recently pulling back and the dividend yield above average at 2.6%, investors may have an attractive entry point to buy shares before improving sales trends send the stock higher.
Should you buy stock in Home Depot right now?
Before you buy stock in Home Depot, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Home Depot wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $399,724!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,374,595!*
Now, it’s worth noting Stock Advisor’s total average return is 967% — a market-crushing outperformance compared to 215% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of August 9, 2026.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
