Home Depot faces pressure in sales and earnings due to a slow housing market and reduced customer spending. Despite this, the company continues to pay a growing dividend. In the fiscal third quarter, sales increased 2.8% year over year, with adjusted earnings per share slightly down. Management lowered full-year expectations, but raised the dividend.

The real estate market’s challenges and consumer spending restraint contribute to Home Depot’s struggles. Despite efforts to improve shopping experiences and market share, the company’s stock has declined by nearly 17% in 2025. With a P/E ratio of 24, Home Depot faces challenges in a tough operating environment.

Considering the stock’s decline, some see an opportunity to buy before a rebound. However, the real estate market’s condition may impact future performance. The Motley Fool Stock Advisor team sees potential in other stocks for strong returns, cautioning investors to consider other options for growth.

Read more at Yahoo Finance: Can Home Depot (HD) Stock Rebound in 2026?