NEW YORK, June 24, 2026, 14:09 (EDT)
- Home Depot stock traded up 4.7% at $339.61 during the afternoon, with the NYSE open as normal on Wednesday.
- Wolfe Research lowered its rating on Home Depot to Peer Perform from Outperform, shifting to a neutral stance. The firm said it still likes Lowe’s better in the sector.
- U.S. new-home sales dropped 7.3% in May, hitting the latest home sales numbers that affect home-improvement demand.
Home Depot stock climbed 4.7% to $339.61 Wednesday afternoon. Wolfe Research dropped its bullish outlook, but the home-improvement retailer still traded up, hitting a session high of $342.11.
Home Depot helped lift the Dow Jones Industrial Average, ranking among its top movers. According to MarketWatch, which cited Dow Jones and FactSet, Home Depot and Sherwin-Williams together made up about a third of the Dow’s 483-point jump earlier in the session.
Wolfe’s Spencer Hanus downgraded Home Depot to Peer Perform from Outperform on Tuesday. The new Peer Perform rating suggests the firm does not see the stock outperforming its peers. Hanus pointed to the “persistent lock-in effect in the housing market,” saying homeowners with low-rate mortgages are staying put and waiting to move. StreetInsider.com
Hanus pointed to higher rate risks and lower return on invested capital after big Pro-segment deals. ROIC is a gauge of profit from the money spent on the business. Wolfe said it favors Lowe’s in home improvement. Lowe’s shares gained 3.1% to $220.18 Wednesday.
Home sales numbers gave investors little relief. The Commerce Department’s Census Bureau said new U.S. single-family home sales slid 7.3% in May, putting the annual rate at 580,000 units, the weakest since January. That was the second straight monthly drop, according to .
Mortgage rates stuck close to recent highs, making things tough for buyers. Freddie Mac said the average 30-year fixed rate slipped to 6.47% on June 18, just below last week’s 6.52%. Many households still face hefty borrowing costs.
Stephen Stanley, chief U.S. economist at Santander U.S. Capital Markets, told Reuters demand for new homes is “tepid,” adding that the market might have to “wait for 2027” to see much change. Christopher Rupkey, chief economist at FWDBONDS, said there are “not enough homes on the market” and most available homes are too expensive. Reuters
Home Depot posted mixed results in its latest report. The company reported a 4.8% increase in first-quarter sales to $41.8 billion. Same-store sales, which includes online, were up just 0.6%. Net earnings slipped to $3.3 billion from $3.4 billion.
Home Depot chair, president and CEO Ted Decker said demand in the first quarter stayed “relatively similar” to fiscal 2025, even as consumers faced more uncertainty and housing affordability stayed under pressure. Home Depot stuck with its guidance for fiscal 2026, still looking for total sales growth in the 2.5% to 4.5% range and comparable sales set to be flat to up 2.0%. Home Depot Investor Relations
Home Depot is making more moves to grow sales to professional contractors. Its SRS Distribution arm wrapped up the Mingledorff’s buy in May—an HVAC distributor operating 42 outlets across five southeastern states. Decker said the acquisition will mean more products and services aimed at Pros.
But there’s a risk the stock rally gets out in front of real housing demand. Higher rates might keep current homeowners from making a move, and demand for new homes could stay weak. If Pro acquisitions don’t bring in enough sales growth, returns could also take a hit. Home Depot lists housing, credit markets, tariffs, and consumer demand as things that could push its actual results away from the outlook.
Home Depot on Wednesday announced a July 4 savings event for June 25 to July 8, offering deals on outdoor gear and appliances. The sale should help summer store traffic, but the big question for the stock is still how long housing will drag.
