Should I buy Home Depot stock in 2025?

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At HelloSafe, our expert has been monitoring Home Depot's performance for over three years. Each month, hundreds of thousands of Canadians rely on us to analyze market trends and highlight the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, compensated by Home Depot.

What is Home Depot?

How much is Home Depot stock?

The price of Home Depot stock is rising this week. As of now, HD trades at $360.49 USD, gaining 0.42% in the past 24 hours but down 1.14% over the last week. The company’s market capitalization stands at $358.34 billion, with an average three-month daily volume of 3.79 million shares. Home Depot’s price-to-earnings (P/E) ratio is 24.19, its dividend yield is an attractive 2.56%, and the stock’s beta is 1.09—indicating moderate market volatility. With a robust presence in Canada and across North America, HD’s mix of steady dividends and resilient earnings adds to its investment appeal for Canadians.

Our full analysis on Home Depot stock

We have carefully reviewed Home Depot’s latest financial results alongside its three-year stock performance, integrating a range of key financial indicators, real-time technical signals, and sector benchmarks through our proprietary analytical models. Our in-depth analysis also draws on comparative market data and detailed competitor tracking to offer a 360-degree outlook on the stock. So, why might Home Depot once again become a strategic entry point into the home improvement and consumer cyclical sector in 2025?

Recent Performance and Market Context

Home Depot (NYSE: HD) has demonstrated measured resilience amid challenging macroeconomic conditions. As of May 1, 2025, the stock trades at $360.49, reflecting a +7.86% gain over the past twelve months, outperforming many peers in the consumer discretionary segment. While the stock declined by -8.16% over the last six months—mirroring broader cyclical volatility—it is noteworthy that intraday and weekly movements have stabilized, with the past week’s decrease limited to just -1.14% and a mild +0.42% intraday uptick.

A series of positive developments have contributed to renewed investor confidence. Home Depot reported Q4 sales of $39.7 billion, a robust +14.1% year-over-year increase, and adjusted EPS of $3.13. The board approved a new dividend of $2.30 per share—continuing 152 quarters of consecutive payments—evidencing disciplined capital allocation that appeals to income-focused investors. Furthermore, a 2.2% dividend increase in February 2025 reinforced the company’s commitment to shareholder returns.

The macro backdrop is turning more supportive. The North American housing market, historically a powerful driver for Home Depot, is showing early signs of stabilization, with expectations for interest rate cuts in late 2025 poised to catalyze home buying and renovation cycles. Additionally, the company’s diversified presence across the United States, Canada, and Mexico presents a natural hedge against regional economic slumps.

Technical Analysis

Technical signals currently suggest growing accumulation and a building bullish base for Home Depot. As of early May 2025:

• Relative Strength Index (RSI, 14d): 58.17, confirming mild bullish momentum, just below overbought territory—traditionally considered a precursor to further gains when accompanied by confirming signals.
• MACD (12,26): 0.35, signaling an ongoing buy trend, with positive crossovers observed.
• Williams %R: -10.99, indicating slight overbought conditions, but not enough to diminish breakout potential.

Every major moving average—5, 20, 50, 100, and 200 days—offers a buy signal, with current price levels ($360.49) comfortably eclipsing these averages (ranging $354.26–$357.68). This rare technical alignment underscores both institutional and retail confidence.

Well-defined support levels at $353.88 and $355.31 have repeatedly contained short-term selling pressure, while resistance at $359.63 and $360.36 is now being tested—an encouraging sign of momentum reversal. This structure gives further credence to the thesis that Home Depot’s recent retracement could represent a tactical low for new positions.

Fundamental Analysis

Home Depot’s fundamentals reflect operational excellence and sustained growth potential:

• Revenue Growth: Fiscal 2024 sales rose to $159.5 billion (+4.5% YoY), with Q4 alone up a formidable +14.1%—demonstrating underlying demand despite cyclical headwinds.
• Profitability: Net earnings for fiscal 2024 reached $14.8 billion, with EPS of $14.91 (adjusted $15.24). Gross margin (33.4%) and operating margin (13.0% reported, 13.4% adjusted) remain sector-leading.
• Valuation: The current P/E of 24.19 is well justified, balancing premium brand status and structural advantages. Price/Sales stands at 2.23, while robust projected cash flows and continued dividend growth offer an attractive risk-reward profile versus similar large-cap retailers.
• Dividends: The forward yield of 2.56%, with a payout ratio of 61%, underscores dividend dependability. Home Depot’s 152 consecutive quarters of payouts provide rare stability in an otherwise volatile sector.
• Strategic Expansion: Store count surpassed 2,347 across North America, including a strong Canadian footprint, and thirteen new stores are planned in 2025. Recent investments in technology, particularly AI-powered “Magic Apron” customer experience platforms, signal a forward-thinking growth mindset.

Market leadership, superior brand recognition, and a robust balance sheet with prudent debt leverage further distinguish Home Depot as a top-tier operator.

Volume and Liquidity

An average daily trading volume of 3.79 million shares attests to ample liquidity and sustained investor engagement. This active float not only provides ease of entry and exit but helps ensure fair price discovery—dampening volatility while affording dynamic valuation resets when catalysts emerge. Such depth is advantageous for both institutional and retail participants, enhancing the appeal for larger-scale positions.

Catalysts and Positive Outlook

Several bullish catalysts reinforce a constructive medium- to long-term perspective:

• Dividend Growth: The recent 2.2% increase signals management confidence in future cash flows and business resilience.
• AI-Powered Innovations: The rollout of “Magic Apron” and advanced supply chain analytics are expected to drive further productivity and customer satisfaction, positioning Home Depot as a digital leader in retail.
• Expansion Plans: With thirteen new store openings and continued investment in e-commerce, Home Depot can capture share in both physical and digital retail environments.
• Housing Market Tailwinds: Anticipated interest rate cuts in late 2025, coupled with prospective housing market recovery, are likely to stimulate consumer investment in remodeling and renovations—a direct benefit to Home Depot’s core business.
• Professional Segment Penetration: Strategic outreach to professional contractors offers higher-ticket sales and improved operational leverage.
• ESG and Sustainability: The company’s focus on sustainable supply chains and eco-friendly home improvement solutions resonates with a growing base of ESG-oriented investors.

Together, these dynamics suggest Home Depot is not only weathering current economic turbulence but is strategically positioned to benefit from a cyclical and structural upswing.

Investment Strategies

Market conditions and technical alignment create compelling argumentation for a range of investment horizons:

• Short-Term (3–6 Months):
• Strong technical momentum and recent support retests suggest that initiating positions near current levels could capture further upside in anticipated moves toward the consensus target of $427.98.
• For trading-focused investors, the proximity to support at $355 and tests of resistance at $360–$362 provides clear reference points for stop-loss and profit-taking strategies.
• Medium-Term (6–18 Months):
• Home Depot’s projected sales and margin expansion, alongside improving housing sector prospects, offer an attractive proposition for medium-term portfolio allocations.
• The upcoming earnings season and any dovish signals from central banks could act as key catalysts for breakout price action.
• Long-Term (18+ Months):
• Market leadership, digital transformation, consistent dividend growth, and an expanding North American footprint suggest that Home Depot may continue to deliver shareholder value regardless of macroeconomic cycles.
• Investors emphasizing dividend reinvestment and capital compounding may find the current valuation particularly compelling given the company’s structural advantages and diversified growth platform.

Ideal positioning would see investors accumulating shares near the established support area or scaling positions ahead of scheduled catalysts such as earnings releases, dividend ex-dates, or macro policy shifts.

Is it the Right Time to Buy Home Depot?

Home Depot’s powerful combination of stable fundamentals, improving momentum, and a thoughtful expansionary vision offers an enticing entry point at current levels. The company’s defensible market share, consistent dividend record, investment in technology, and ability to navigate complex economic cycles all suggest the stock may be entering a new bullish phase. With technical indicators reinforcing accumulation and the macro environment poised for further normalization, the investment thesis appears underpinned by both quantitative and qualitative drivers.

In summary, Home Depot seems to represent an excellent opportunity for investors seeking exposure to a best-in-class operator at a moment when both technical and fundamental factors are aligned. As sector sentiment improves and new growth levers activate, the stock’s upside potential justifies renewed interest and careful portfolio consideration. For those monitoring entry points in the North American retail and consumer sector, Home Depot’s present setup underscores its status as a compelling, high-conviction opportunity for 2025 and beyond.

How to buy Home Depot stock in Canada?

Buying Home Depot stock online is a straightforward and secure process when you use a regulated broker in Canada. Whether you’re a first-time investor or more experienced, you have two main options: direct (“spot”) share purchases, where you own the stock outright, or trading via Contracts for Difference (CFDs), which lets you speculate on price movements with leverage. Both approaches can easily be done online from your computer or mobile device, with strong protections thanks to Canadian regulations. To find the broker best suited for your needs, see the detailed comparison further down this page.

Spot Buying

A spot (cash) purchase means you buy Home Depot shares and become a direct shareholder, benefiting from potential price appreciation and any dividends paid. In Canada, most online brokers charge a flat commission per trade, usually between CAD $4 and CAD $9.99.

Important Example

For example: If the Home Depot share price is $360.49 USD (about CAD $494.10 at a rate of 1.37), with a $1,000 CAD investment (including an estimated $5 commission), you could buy roughly 2 shares.

• ✔️ Gain scenario: If the share price rises by 10%, your shares are now worth about $1,100 CAD.
• Result: That’s a +$100 gross gain, or +10% return on your investment (before currency effects and taxes).

Trading via CFD

CFDs (Contracts for Difference) allow you to speculate on Home Depot’s stock price without directly owning the shares. Instead, you enter a contract with a broker to exchange the difference in price from when you open and close your position. CFDs can be traded with leverage, amplifying both gains and losses. The main fees with CFDs are the spread (the difference between buy and sell price) and overnight financing charges if you hold positions beyond a day.

Example

You decide to trade Home Depot CFDs with a $1,000 CAD investment and 5x leverage, giving you a market exposure of $5,000 CAD.

• ✔️ Gain scenario: If the Home Depot stock price rises by 8%, your position gains 8% × 5 = 40%.
• Result: That’s a +$400 gain on your $1,000 stake (excluding fees and currency effects).

Final Advice

Before you invest, it’s essential to compare broker fees, commissions, and trading conditions since these can vary significantly in Canada. Each method—spot and CFD trading—comes with its own risks and opportunities, so your choice should reflect your individual investment goals and risk tolerance. For a tailored selection, consult the broker comparison available further down this page, and always make sure you fully understand each product before investing.

Platforms

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4.9

Minimum Deposit

$50

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Broker specializing in Forex and CFDs

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Our 7 tips for buying Home Depot stock

The latest news about Home Depot

Home Depot’s Canadian operations remain a core part of its North American growth strategy, with all 10 provinces served.
Over the last week, the company reaffirmed its commitment to the Canadian market as a stable revenue stream and a source of in-store and digital innovation. Notably, Home Depot continues to invest in modernization efforts at Canadian locations, enhancing omnichannel shopping experiences that blend in-store pickup, e-commerce, and professional contractor services—capabilities increasingly valued by Canadian consumers and small businesses.

Dividend growth was reconfirmed with a 2.2% increase, marking the 152nd consecutive quarter of dividend payments, which includes Canadian shareholders.
The most recent quarterly dividend of $2.30 per share is also accessible to Canadian investors, subject to cross-border tax considerations. This reliable income stream and the strong dividend growth record are a particularly attractive feature for long-term investors in Canada seeking both total return and income stability from a U.S.-listed equity.

Recent technical indicators for Home Depot’s stock overwhelmingly signal a positive near-term outlook, with all major moving averages showing “buy.”
As of May 1, 2025, the stock’s Relative Strength Index sits at 58.17 and its MACD at 0.35, both indicating continued buying momentum. Importantly, all short-, medium-, and long-term moving averages (from the 5-day to the 200-day) support a bullish perspective. This positive technical backdrop is relevant for Canadian market participants as Home Depot remains a popular core holding in Canadian mutual funds and ETFs tracking large-cap U.S. equities.

Home Depot’s Q4 results and 2025 outlook provide confidence in the company’s resilience, with sales up 14.1% year-over-year and expanded store openings planned, including in Canada.
The announcement of 13 new store openings in fiscal 2025, on top of a robust 4.5% total sales growth for fiscal 2024, demonstrates management’s confidence in demand fundamentals across geographies, including Canada. Particularly for Canadian stakeholders, this sustained capital allocation signals the company’s intention to increase its footprint and local market share despite macroeconomic headwinds.

Strategic advancements leveraging artificial intelligence—such as the “Magic Apron” technology—are now in pilot phases at select North American stores, including Canadian locations.
These tools are designed to refine inventory management and customer engagement, driving operational efficiency and personalized service. Early implementation in Canada underlines Home Depot’s view of the country as a testbed for innovation, and aligns with local consumer preferences for tech-enhanced retail experiences. These advances are expected to increase customer loyalty and boost sales—positive signals for the stock’s medium- and long-term performance as perceived by Canadian investors and analysts.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.