Is Home Depot Stock Underperforming the Dow?

Home Depot, Inc_ location by- Sundry Photography via Shutterstock

Sohini Mondal

Tue, February 24, 2026 at 11:20 PM GMT+9 2 min read

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HD

+2.87%

$DOWI

LOW

+1.99%

With a market cap of $375.3 billion, The Home Depot, Inc. (HD) is a leading home improvement retailer operating across the United States and internationally, offering a wide range of building materials, home improvement, lawn and garden, décor, and facilities maintenance products. It sells its products through an extensive network of physical stores, websites, and mobile applications.

Companies worth more than $200 billion are generally considered “mega-cap” stocks, and Home Depot fits this criterion perfectly. The company also provides installation services, along with tool and equipment rental, serving both do-it-yourself customers and professionals such as contractors, builders, and specialty tradespeople.

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Shares of the Atlanta, Georgia-based company have slipped 9.2% from its 52-week high of $426.75. HD stock has risen 9.8% over the past three months, outpacing the broader Dow Jones Industrials Average’s ($DOWI) 5.5% increase over the same time frame.

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In addition, HD stock is up 9.6% on a YTD basis, exceeding DOWI’s 1.5% gain. However, shares of Home Depot have declined 2.2% over the past 52 weeks, lagging behind DOWI’s 12.4% return over the same time frame.

The stock has shown a bullish trend, trading above its 50-day and 200-day moving averages since January 2026.

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The Home Depot reported Q4 2025 results on Feb. 24, posting sales of $38.2 billion, down 3.8% year-over-year, with net earnings of $2.6 billion, reflecting one fewer operating week and continued pressure from a cautious housing market. For full-year fiscal 2025, the company delivered sales of $164.7 billion, up 3.2%, while EPS declined to $14.23. The company also issued fiscal 2026 guidance calling for 2.5% - 4.5% total sales growth and the opening of approximately 15 new stores.

In comparison, rival Lowe’s Companies, Inc. (LOW) has outpaced HD stock. LOW stock has gained 13.8% on a YTD basis and 14.7% over the past 52 weeks.

Despite the stock’s underperformance relative to the Dow over the past year, analysts are moderately optimistic about its prospects. HD stock has a consensus “Moderate Buy” rating overall from the 34 analysts covering the stock, and the mean price target of $399.47 represents a premium of nearly 6% to current levels.

_ On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com _

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