Should You Buy Home Depot Stock Before Nov. 17?
The home improvement retailer reports earnings in less than a month.
Home Depot's stock (HD) has faced challenges this year, declining by 10% since the beginning of 2026. The decline is due to a decrease in consumer spending caused by inflation, as well as increased caution about home renovation projects. Despite trading at a lower valuation, the retail stock may be a good buy before its upcoming earnings release on November 17.
Home Depot's growth rate has been lackluster, with multiple quarters of declining revenues. However, in its latest quarter, growth rebounded to just under 6%. The company's business is heavily reliant on long-term necessities like home repairs and maintenance, suggesting a recovery from any downturn in growth. Home Depot is a trusted brand known for tools, equipment, and renovation advice.
Although I cannot predict if the upcoming earnings report will show a stronger quarter, the company's quality and reasonable valuation (21 times trailing earnings, lower than the S&P 500 average of 23) make it an attractive investment opportunity. Home Depot's dividend yield of 3% and 158 consecutive quarters of paying dividends make it a reliable income source for investors.
For long-term investors, purchasing the stock at a reasonable valuation could result in significant long-term returns.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
