1. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 104
Market Capitalization: $388.93 billion
The Home Depot, Inc. (NYSE:HD) is among the best lumber stocks to invest in now. On January 16, Truist raised its price target on The Home Depot to $405 from $390 and reiterated a Buy rating, citing stable December sales trends and supportive consumer data. The firm highlighted encouraging card data and holiday updates, while also pointing to the potential benefit of higher tax refunds boosting spending in typically slower seasonal months. For the company, sales trends have remained stable in December despite more difficult comparisons, the firm added.
In its third-quarter 2025 earnings call, The Home Depot, Inc. (NYSE:HD) reported sales of $41.4 billion, up 2.8% year over year, with U.S. comparable sales rising 0.1%. Adjusted diluted EPS was $3.74 compared to $3.78 a year ago. Management updated fiscal 2025 guidance to approximately 3% total sales growth, including a $2 billion contribution from GMS. Despite housing market headwinds, the company continues to demonstrate resilience through scale, merchandising strength, and disciplined cost management. As a dominant player in building materials with significant exposure to lumber and repair-and-remodel demand, Home Depot remains well-positioned to benefit from any stabilization in housing activity, making it a high-quality core holding with durable cash flow generation.
Founded in 1978 and headquartered in Atlanta, Georgia, The Home Depot, Inc. (NYSE:HD) is one of the largest home improvement retailers globally. It is a major retailer of lumber, with building materials such as lumber, fencing, and trusses accounting for roughly 35% of its sales, making its stock highly sensitive to lumber prices and the housing market.
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