Home Depot (HD) stock fell 6% after reporting weaker-than-expected earnings for the third straight quarter. Same-store sales only grew 0.2%, prompting a 5% decline in adjusted EPS guidance for the year. Despite the dip, Home Depot remains a market leader, with digital sales up 11% and a strategic expansion into professional contractors.

With a 2.73% dividend yield and potential housing market recovery, Home Depot shares could see a rebound in 2026. The company’s exposure to contractors and DIY clients positions it well for growth. Trading at a low price-sales ratio of 2.23x, the stock is considered inexpensive compared to historical multiples.

Despite the recent earnings disappointment, Wall Street analysts are still bullish on Home Depot stock. The company’s market-leading position, digital sales growth, and strategic expansion into higher-margin segments make it an attractive long-term investment. With interest rate cuts expected to boost the housing market, Home Depot is poised for a potential recovery.

Read more at Yahoo Finance: Should You Buy the Post-Earnings Selloff in Home Depot Stock?