New York, Jan 20, 2026, 19:55 EST — After-hours
- Shares of Home Depot fell 1.3% amid a widespread selloff across U.S. equities.
- The company’s foundation highlighted a skilled-trades shortage that could delay rebuilding efforts after disasters.
- Traders are turning their attention to Home Depot’s earnings report on Feb. 24 for a better sense of demand tied to housing.
Home Depot shares closed Tuesday down 1.3% at $375.11, holding up better than the broader market as the S&P 500 fell 2.1% and the Dow slipped 1.8% amid risk-off selling. The stock outperformed several major retailers, with Lowe’s dropping 3.3%, Amazon tumbling 3.4%, and Walmart slipping 0.8%. (MarketWatch)
The move followed new research from Home Depot’s foundation highlighting a shortage of skilled trades workers. This bottleneck could delay rebuilding after disasters, despite insurance payouts and aid being in place, underscoring that the home improvement cycle isn’t driven by interest rates alone.
This is crucial now since Home Depot relies heavily on “Pros” — professional contractors and remodelers — to staff jobs and keep projects on track. Labor shortages can push back order deliveries and shift the timing and type of purchases.
The foundation’s survey found that nearly 60% of Americans aren’t confident their communities can bounce back quickly after a disaster. Contractors working on disaster recovery projects identified qualified labor as their top need. Erin Izen, executive director of The Home Depot Foundation, described labor shortages as “one of the primary issues.” She added that the Path to Pro education grants program will roll out nationwide by 2026. Danica Deming from Team Rubicon stressed that investing in trades training is “essential for building both strong communities and storm-resistant housing.” (The Home Depot)
TD Cowen bumped up its price target for Home Depot to $450 from $410, maintaining a “Buy” rating, TipRanks reports, citing The Fly. (TipRanks)
The housing market continues to be the key variable for the sector. On Tuesday, homebuilder D.R. Horton surpassed quarterly estimates, driven by incentives to clear out inventory. Mortgage rates have dropped following recent Federal Reserve cuts, with Freddie Mac reporting the average 30-year rate near 6.06%, hitting roughly a three-year low, according to Reuters. (Reuters)
For Home Depot, a more favorable rate climate could open the door to larger projects and increased home turnover, though the timing remains uncertain. Investors are focused on whether “Pro” demand picks up again or remains uneven, as homeowners juggle affordability, financing expenses, and labor availability.
That labor crunch Home Depot flagged works both ways. When contractors can’t find enough workers, projects drag on, and the industry might fail to keep up with sudden spikes in demand from storm repairs. So even if order books appear solid, near-term gains could be capped.
Home Depot’s next major milestone is fast approaching. The company will report its fiscal fourth-quarter results on Tuesday, Feb. 24, at 9:00 a.m. ET, per its investor events calendar. (Home Depot Investor Relations)
Investors want fresh guidance on sales trends, margins, and demand from both Pros and do-it-yourself customers. They’ll also watch closely for any signs management spots that falling borrowing costs are starting to boost store traffic and increase ticket sizes.
