Home Depot Stock Keeps Falling—Analysts Say the Upside Is Still There

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company’s growing focus on higher-margin professional customers has helped offset softer do-it-yourself demand, as contractors tend to spend more per visit and make repeat purchases, providing more consistent revenue during periods of weak housing activity.Shares have fallen more than 12% over the past month as housing concerns weigh on the sector, yet analysts remain optimistic, with an average price target of $416, more than 20% above the current price.Interested in The Home Depot, Inc.? Here are five stocks we like better.A sluggish housing market and weak consumer sentiment have been major headwinds for The Home Depot Inc. (NYSE: HD), as homeowners pull back on large renovation projects, which are a key driver of the company's sales. But despite the difficult backdrop, the home improvement giant has remained surprisingly resilient.The company's strategy of expanding its focus on professional contractors rather than do-it-yourself customers has helped drive growth, supporting a fiscal Q4 2025 earnings report that beat expectations and renewed optimism on Wall Street, which sees substantial upside from current levels. Still, the stock has struggled as housing market concerns continue to outweigh analysts' optimism and the company's solid fundamentals.→ Broadcom’s AI Momentum Could Be Far From OverShares were recently trading around $339, down about 13% over the last month and 23% from the 52-week high reached in mid-September. Could the pullback signal the stock is setting up for a rebound in the coming months? It could, particularly if mortgage rates tick lower or the spring home-selling season proves strong.Persistently high mortgage rates have created a lock-in effect, with homeowners reluctant to sell and take on higher borrowing costs. That has kept home sales sluggish and weighed on renovation spending, which typically rises when housing turnover increases. Weak consumer confidence has also added to the pressure, causing many households to rein in spending on large home-improvement projects.→ Amazon Is Rising While the Market Falls—Here’s WhyIn the company's quarterly earnings call, Chief Financial Officer Richard McPhail said, "Housing turnover has remained at historical lows since 2023, which has significantly reduced demand for projects and other purchases associated with buying and selling a home." He added, "Our customers also tell us they have concerns over general economic uncertainty, including inflation, growing job concerns, and higher financing costs."Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,664.75 +28.75 (+0.43%)Dow Futures46,769.00 +177.00 (+0.38%)Nasdaq Futures24,506.00 +111.75 (+0.46%)Russell 2000 Futures2,499.30 +18.40 (+0.74%)VIX27.19 -0.10 (-0.37%)Gold4,998.90 -62.80 (-1.24%)Trending tickersADBE Adobe Inc. 249.32 -20.46 (-7.58%)BTC-USD Bitcoin USD 72,566.75 +1,667.33 (+2.35%)XYZ Block, Inc. 59.79 -0.11 (-0.18%)ULTA Ulta Beauty, Inc. 535.72 -88.98 (-14.24%)RBRK Rubrik, Inc. 53.43 -0.59 (-1.09%)PortfolioSign in to access your portfolioSign inTop gainersNP Neptune Insurance Holdings Inc. 21.87 +3.68 (+20.23%)PAYP PayPay Corporation 21.14 +2.98 (+16.41%)VEON VEON Ltd. 50.60 +6.29 (+14.20%)KLAR Klarna Group plc 15.91 +1.29 (+8.82%)KYIV Kyivstar Group Ltd. 11.07 +0.87 (+8.53%)Top losersULTA Ulta Beauty, Inc. 535.72 -88.98 (-14.24%)MEOH Methanex Corporation 51.75 -6.31 (-10.87%)CACC Credit Acceptance Corporation 447.79 -46.21 (-9.35%)AAOI Applied Optoelectronics, Inc. 96.81 -9.38 (-8.83%)EQX Equinox Gold Corp. 14.57 -1.35 (-8.48%)Most activeNVDA NVIDIA Corporation 180.25 -2.91 (-1.59%)AAL American Airlines Group Inc. 10.30 -0.24 (-2.28%)NOK Nokia Oyj 8.24 +0.10 (+1.23%)BMNR Bitmine Immersion Technologies, Inc. 20.54 -0.01 (-0.05%)MARA MARA Holdings, Inc. 9.32 +0.56 (+6.39%)Top economic eventsEarnings eventsMy earnings eventsEarnings events