From Yahoo Finance: 2025-05-31 17:26:00

Home Depot (HD) plans to maintain steady prices on tariff-impacted goods, unlike competitors like Walmart (WMT) who are raising prices. With over 50% of products sourced domestically, Home Depot is less reliant on imports. Despite housing market pressures, the company remains positioned for a strong rebound when conditions stabilize.

U.S. tariffs on Chinese imports currently stand at 30%, down from 145%. Home Depot’s strategic position could allow it to gain market share, especially if tariff-driven price disparities widen. The company’s lower tariff exposure provides a competitive advantage in the current trade environment.

Despite challenges in the housing market, Home Depot is well-prepared for a rebound when housing activity improves, expected by 2026. The company reaffirmed its 2025 earnings outlook, projecting sales growth and steady margins. Analysts have a Strong Buy consensus rating on Home Depot, with an average price target of $428.74.

Analysts have differing opinions on Home Depot’s future outlook. While some are bullish on the company’s stability and growth potential, others are more cautious due to softer trends in the home improvement sector and high valuation. Home Depot’s premium valuation suggests it must meet or exceed expectations to maintain its position.

Home Depot’s decision to hold prices steady showcases its strategic advantage in supply chain diversification and market positioning. This approach could serve as a model for navigating retail challenges during economic downturns. Despite economic uncertainty, Home Depot’s investments in its pro services segment are expected to pay off in the long term.



Read more at Yahoo Finance: Home Depot (HD) Eyes Stock Market Payoff With Contrarian Tariff Strategy