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 $331.00B, a P/E of 23.69, a 8.4% net margin, and 4.8% year-over-year revenue growth.

Reflects the latest available analysis · analyzed Aug 1, 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 indicates strong cash generation
  • Forward P/E of 20.63x suggests some valuation discount relative to current P/E
  • Return on equity of 128.38% reflects high capital efficiency
  • Dividend yield of 2.80% provides income appeal
VS
Bear case
  • Debt-to-equity ratio of 4.59x indicates high leverage
  • Negative earnings growth of -4.30% year-over-year
  • MACD histogram negative at -1.012, signaling weakening momentum
  • Quick ratio of 0.23x suggests potential liquidity concerns

Key facts

Sector
Consumer Cyclical
Market cap
$331.00B
P/E ratio
23.69
Gross margin
33.1%
Net margin
8.4%
Rev growth YoY
4.8%
Price (Aug 1, 2026)
$331.96

Peers

Clustered with HD by analysis-profile similarity.

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See the full verdict on HD

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