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    The Bull Case For Home Depot (HD) Could Change Following Fed Cut And New Digital Initiatives

    Simply Wall St·12/16/2025 19:26:54
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    • Earlier in December 2025, The Home Depot reaffirmed its 2025 guidance, issued cautious but positive 2026 targets, launched a creator-focused marketing portal to bolster digital engagement, and expanded same-day delivery in Canada through an Instacart partnership covering more than 175 stores.
    • Together with a recent Federal Reserve rate cut that commentators argue could support home improvement demand, these moves highlight how Home Depot is trying to deepen customer reach across both professional and digital channels while operating under measured growth expectations.
    • We’ll now examine how the Fed rate cut, alongside Home Depot’s reaffirmed guidance, may reshape the company’s investment narrative.

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    Home Depot Investment Narrative Recap

    To own Home Depot, you need to believe that a slower but resilient home improvement market, supported by aging housing stock and eventual renovation catch up, can still reward patient shareholders. The Fed’s recent rate cut could support that thesis, but the key near term catalyst remains management’s ability to convert deferred big ticket projects into actual demand. The reaffirmed 2025 and cautious 2026 guidance suggests the recent news does not materially change the biggest risk around softer discretionary remodel spending.

    Among the latest announcements, the launch of The Home Depot Creator portal stands out as most relevant, because it speaks directly to deepening digital engagement and driving incremental product discovery. If successful, this kind of higher intent online traffic could support the longer term catalysts around margin improvement and market share gains, even if macro tailwinds from lower rates or pent up renovation demand arrive more slowly than some investors hope.

    Yet even with rate cuts and digital initiatives, investors should be aware that Home Depot’s high capital spending and pressured margins could still...

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

    Home Depot's narrative projects $182.4 billion revenue and $17.4 billion earnings by 2028.

    Uncover how Home Depot's forecasts yield a $398.52 fair value, a 12% upside to its current price.

    Exploring Other Perspectives

    HD 1-Year Stock Price Chart
    HD 1-Year Stock Price Chart

    Six members of the Simply Wall St Community currently estimate Home Depot’s fair value between US$278.70 and US$398.52, highlighting wide disagreement on upside. Set that against management’s own guidance for only modest sales and earnings growth, and you can see why it pays to compare several different opinions before deciding what Home Depot’s future performance might mean for your portfolio.

    Explore 6 other fair value estimates on Home Depot - why the stock might be worth as much as 12% more 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.

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    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.