The Home Depot, Inc.HD

Consumer Cyclical
Neutral

ASignal's systematic analysis rates HD as Neutral. The Home Depot, Inc. has a market cap of $342.31B, a P/E of 24.04, a 8.4% net margin, and 4.8% year-over-year revenue growth.

Reflects the latest available analysis · analyzed Jul 11, 2026

The case on HD

Bull vs bear, surfaced by ASignal's framework agents from public market data. The precise verdict: ASignal Rank, confidence, and price targets - is in the app.

Bull case
  • Positive free cash flow of $10.13B indicating strong cash generation
  • Forward P/E of 21.33x below current P/E of 24.04x suggesting valuation improvement
  • Operating cash flow of $18.03B supports capital return and reinvestment capacity
  • Return on equity of 128.38% reflects high capital efficiency
  • Dividend yield of 275.00% (note: likely data error; may reflect special dividend or miscalculation)
VS
Bear case
  • Debt-to-equity ratio of 4.59x indicating high leverage and financial risk
  • Negative earnings growth of -4.30% year-over-year
  • MACD below signal line with negative histogram, suggesting weakening momentum
  • Price near lower Bollinger Band but with negative momentum (-0.0159)
  • Quick ratio of 0.23x indicating potential liquidity concerns

Key facts

Sector
Consumer Cyclical
Market cap
$342.31B
P/E ratio
24.04
Gross margin
33.1%
Net margin
8.4%
Rev growth YoY
4.8%
Price (Jul 11, 2026)
$342.31

Peers

Clustered with HD by analysis-profile similarity.

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ASignal Rank (1-4), confidence score, Buffett / Ackman / Dalio grades, price targets, and the full reasoning behind the call.

How ASignal analyzes HD

Most investors never get a second opinion, let alone several. ASignal runs HD past a panel of specialized investor-framework agents, each calibrated on a distinct school of investing: Warren Buffett's value discipline, Bill Ackman's activist lens, and Ray Dalio's macro view. They don't just score in isolation, they argue: a dedicated Challenger agent pushes back on every conclusion until the panel settles on a reasoned consensus, weighing fundamentals, macro conditions, market sentiment, and price action together. The kind of cross-examined read that takes a research desk hours, ASignal delivers in under two minutes, refreshed every cycle.

The signal direction and the bull and bear case above are free. The precise read, ASignal Rank, framework grades, price targets, and full reasoning, stays with subscribers.

The Home Depot, Inc. (HD) Stock Analysis - ASignal rates it Neutral