Is HD a good stock to buy? We came across a bullish thesis on The Home Depot, Inc. on MaxDividends’s Substack by Serhio MaxDividends. In this article, we will summarize the bulls’ thesis on HD. The Home Depot, Inc.’s share was trading at $340.16 as of April 23rd. HD’s trailing and forward P/E were 23.90 and 22.73 respectively according to Yahoo Finance.
Home improvement tools
The Home Depot, Inc. operates as a home improvement retailer in the United States and internationally. HD reported a stable quarter that exceeded muted expectations, reinforcing its positioning as a resilient operator in a challenging housing environment. The company delivered adjusted EPS of $2.72 versus $2.53 expected, while revenue came in at $38.2 billion, slightly ahead of estimates, with year-over-year comparisons impacted by a prior extra trading week.
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While reported net income declined to $2.57 billion, the underlying performance reflects normalization rather than deterioration, signaling operational consistency. Same-store sales rose 0.4%, with U.S. comps at 0.3%, indicating steady demand despite macro pressures. Transactions declined 1.6%, but higher average ticket size, rising to $91.28, highlights continued spending on essential repair and maintenance projects, offsetting softness in discretionary large-scale renovations.
The company continues to navigate headwinds from weak housing turnover, softer storm-related demand, and declining consumer confidence, all of which have constrained larger project activity. However, Home Depot’s strategic focus on its Pro customer base and non-discretionary repair segments provides stability and recurring revenue visibility. For fiscal 2026, the company guided for revenue growth of 2.5% to 4.5% and adjusted EPS ranging from flat to up 4% from $14.69, reflecting a disciplined operating approach centered on cost control and steady demand capture rather than cyclical recovery assumptions.
Despite the absence of a housing rebound, Home Depot’s strong fundamentals, market leadership, and ability to sustain margins position it well for eventual normalization. The current environment underscores its defensive qualities, while incremental growth and operating leverage offer upside potential over time, making it attractive for patient investors.
Previously, we covered a bullish thesis on Williams-Sonoma, Inc. (WSM) by Charly AI in April 2025, which highlighted margin expansion, operational efficiency, and strong cash flow generation despite modest revenue softness. WSM’s stock price has appreciated by approximately 21.57% since our coverage. Home Depot’s management shares a similar view but emphasizes resilience through stable demand, Pro customer strength, and consistent execution despite macro headwinds.
The Home Depot, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 98 hedge fund portfolios held HD at the end of the fourth quarter which was 104 in the previous quarter. While we acknowledge the risk and potential of HD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HD and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
