Home Depot’s Strong Market Position and Growth Potential: A Buy Recommendation by Zachary Fadem

Wells Fargo analyst Zachary Fadem has maintained their bullish stance on HD stock, giving a Buy rating today.

Zachary Fadem has given his Buy rating due to a combination of factors that highlight Home Depot’s strong market position and potential for growth. Despite facing challenges, Home Depot’s first-quarter performance was robust, with momentum from March and April continuing into May. This trend suggests that the company’s 2025 outlook is increasingly attainable. The ability to maintain pricing across its portfolio, coupled with strategic inventory management and supply chain efficiencies, positions Home Depot favorably in the market.
Furthermore, Home Depot’s first-quarter comparable sales exceeded expectations, driven by positive trends in professional customer sales, which outpaced do-it-yourself sales. The company’s online sales also showed growth, and strategic sourcing decisions are expected to mitigate risks associated with tariffs. These elements, along with a strong engagement in large projects and a significant opportunity in the home improvement sector, underpin Fadem’s optimistic view of Home Depot’s future performance.

In another report released today, TD Cowen also maintained a Buy rating on the stock with a $470.00 price target.

HD’s price has also changed slightly for the past six months – from $400.000 to $377.050, which is a -5.74% drop .