Yahoo Finance
Latest filings show the Bill & Melinda Gates Foundation Trust opened a new position in Home Depot (NYSE:HD), worth about $353 million, during the second quarter.
The stock is down about 15% over the past year.
High mortgage rates and inflation pressures are causing lower new home construction and renovation projects.
Home Depot expects the difficult environment to continue.
The company is guiding for fiscal 2026 comparable-sales growth of just 0% to 2%, compared with 0.3% reported for 2025.
Home Depot has also been dealing with declining profitability.
The company expects 2026 adjusted operating margin to come in at 12.4% to 12.6%, compared with 13.1.% the year prior.
Despite stock declines, HD is trading at roughly 23 times forward earnings.
Valuation is high due to brand presence and market dominance, about 50% higher than the sector median and more than the stock's five-year average.
Compare HD to Lowe's Companies Inc (NYSE: LOW).
LOW is trading at about 17.5 times forward earnings, much lower than HD.
LOW also trades at about 12.7 times forward EBITDA, versus Home Depot at around 16.5 times.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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