Wells Fargo analyst Zachary Fadem has maintained their bullish stance on HD stock, giving a Buy rating yesterday.
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Zachary Fadem has given his Buy rating due to a combination of factors that suggest potential growth and recovery for Home Depot. Despite a less-than-ideal third quarter, the upcoming Analyst Day presents an opportunity for Home Depot to outline its optimistic outlook for 2026, focusing on interest rates, potential stimulus, and long-term market share gains. Fadem believes that the company is well-positioned to improve its EBIT margins and returns over the long term, particularly as it scales its SRS operations and recaptures core sales.
Furthermore, Fadem outlines three potential scenarios for 2026, with the ‘Bull’ case suggesting a favorable environment for Home Depot, driven by interest rate adjustments and stimulus measures. This scenario anticipates modest improvements in EBIT margins and EPS growth, supported by strategic initiatives such as Pro wallet share gains and AI advancements. While there are concerns about industry softness and tariff-driven inflation, Fadem sees limited downside risk and believes that Home Depot’s strategic positioning and potential macroeconomic improvements could lead to significant upside.
According to TipRanks, Fadem is a 5-star analyst with an average return of 8.8% and a 58.52% success rate. Fadem covers the Consumer Cyclical sector, focusing on stocks such as Starbucks, Domino’s Pizza, and Home Depot.
In another report released yesterday, Citi also assigned a Buy rating to the stock with a $407.00 price target.