Can Home Depot’s (HD) Supply Chain Moves Sustain Its Edge Amid Steady Dividend Growth?

• Earlier this month, The Home Depot presented at the CSCMP EDGE 2025 Conference, with key executives sharing insights on reverse logistics and operational innovation.
• Recent reports have spotlighted Home Depot's stable dividend growth, anticipated sales rebound, and ongoing efforts to expand through acquisitions and enhancements to its supply chain.
• To understand the implications for Home Depot, we’ll assess how its reliable dividend growth continues to draw renewed investor confidence.

Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave.

Home Depot Investment Narrative Recap

To be a shareholder in Home Depot, you need to believe in the company's ability to maintain its leadership in home improvement, capitalize on long-term remodeling demand, and continue generating resilient cash flows. The recent CSCMP EDGE 2025 Conference appearance and emphasis on reverse logistics highlight operational momentum, but do not materially change the biggest risk right now: softness in large-ticket renovation projects, as high interest rates continue to pressure discretionary spending in this category.

Among the latest announcements, Home Depot's pending GMS acquisition stands out as a meaningful step, most relevant to current catalysts. Expanding its Pro ecosystem through such acquisitions could enhance the company’s market reach when homeowners resume major projects, supporting Home Depot’s efforts to capture delayed but not lost remodeling demand.

Yet, offsetting this optimism, investors should be aware that inventory build-up could pose a margin headwind if demand doesn’t pick up as expected...

Read the full narrative on Home Depot (it's free!)

Home Depot's outlook anticipates $182.4 billion in revenue and $17.4 billion in earnings by 2028. This is based on a projected 3.4% annual revenue growth rate and a $2.8 billion increase in earnings from the current level of $14.6 billion.

Uncover how Home Depot's forecasts yield a $437.81 fair value, a 13% upside to its current price.

Exploring Other Perspectives

Nine Simply Wall St Community members have valued Home Depot between US$297.74 and US$437.81 per share, reflecting wide variations in outlook. Persistent softness in bigger renovation projects remains a key risk with implications for the company’s sales momentum, so consider a range of these community viewpoints before making decisions.

Explore 9 other fair value estimates on Home Depot - why the stock might be worth 23% less than the current price!

Build Your Own Home Depot Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Home Depot research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Home Depot research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Home Depot's overall financial health at a glance.

Looking For Alternative Opportunities?

Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters:

• Find companies with promising cash flow potential yet trading below their fair value.
• The end of cancer? These 28 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
• We've found 18 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com