The Home Depot, Inc.’s share price was $379.74 on January 13th. Earnings missed expectations, with adjusted EPS of $3.74, despite revenue slightly exceeding estimates at $41.4 billion. Weak comparable sales growth, high operating expenses, and concerns over a challenging economic cycle led to a negative market reaction.

The soft comp trends Home Depot is facing indicate broader structural challenges, with a high interest rate environment suppressing big ticket transactions. Management cited lower storm activity and acquisition-driven growth as contributing factors to the company’s weak performance. Revised guidance now expects a 5% decline in adjusted EPS for the year.

Williams-Sonoma, Inc. (WSM) saw a 31.48% increase in stock price since a bullish thesis in April 2025. The Frugal Investor shared a bearish thesis on Home Depot, citing near term demand weakness and cyclical risk. While 104 hedge fund portfolios held HD in Q3, the company is not among the 30 Most Popular Stocks Among Hedge Funds.

Read more at Yahoo Finance: The Home Depot, Inc. (HD): A Bear Case Theory