Home Depot Stock: Is HD Underperforming the Consumer Discretionary Sector?

Atlanta, Georgia-based The Home Depot, Inc. (HD) is a home improvement specialty retailer with retail stores across the globe. The company has a market capitalization of $316.6 billion and sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. 

Companies with a market capitalization of $200 billion or more are typically referred to as "mega-cap stocks." HD fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the retail home improvement industry. 

However, the stock currently trades 25.6% below its 52-week high of $426.75 recorded on Sept. 17, 2025. HD has declined 16.6% over the past three months, notably underperforming the State Street Consumer Discretionary Select Sector SPDR ETF’s (XLY) 3.9% rise during the same time frame.

In the longer term, HD has delivered a similar performance. The stock fell 13.7% over the past 52 weeks, underperforming the 13% surge of XLY over the same period. HD has been trading below its 200-day and 50-day moving averages since early March. 

On May 19, HD stock rose marginally following the release of its Q1 2026 earnings. The company’s revenue rose 4.8% from the prior year’s quarter to $41.8 billion and came in line with the Street’s estimates. Moreover, its adjusted EPS amounted to $3.43, surpassing Wall Street’s forecasts. 

When stacked against its rival, Lowe's Companies, Inc. (LOW) has declined 3.4% over the past year and has lagged behind HD.

Wall Street has a moderately optimistic view of the stock currently. Among the 34 analysts tracking HD, the overall consensus stands at a “Moderate Buy.” Its mean price target of $374.03 suggests 17.6% upside potential from current price levels.