---
title: "HD Stock Slips from $358 Peak as Home Depot Prepares to Report Earnings amid High Mortgage Rates"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/296109464.md"
description: "Home Depot (HD) stock slipped from a $358 peak to ~$338 ahead of Q2 earnings on Aug 18. CEO Ted Decker took medical leave, with oversight shifting to executives. Pressure stems from high mortgage rates (>6.5%) slowing the housing market and DIY sales, plus concerns over $56B debt impacting margins. However, the pro contractor business, bolstered by SRS Distribution acquisition, offers stability. Wall Street maintains a 'Strong Buy' consensus with an average price target of $382.71."
datetime: "2026-08-17T12:34:29.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/296109464.md)
  - [en](https://longbridge.com/en/news/296109464.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/296109464.md)
---

# HD Stock Slips from $358 Peak as Home Depot Prepares to Report Earnings amid High Mortgage Rates

Home Depot (HD) stock slipped from its $358 peak to trade near $338 as the company prepares to post its second-quarter earnings report on Tuesday, August 18, before the stock market opens. Investors want to see if strong sales from pro builders can balance out a slow housing market.

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Wall Street estimates show expected revenue of $47.5 billion, up 4.9% from last year. Expected profits sit at $4.71 per share. The stock dropped from its peak primarily because chief executive officer Ted Decker took a temporary medical leave right before the earnings date. Operational oversight moved to senior executives Ann-Marie Campbell and chief financial officer Richard McPhail while Decker is away.

## **High Mortgage Rates and Weak Sales Drive Housing Market Slowdown**

The primary reason for pressure on Home Depot's retail sales is the weak housing market. Mortgage rates stay above 6.5%, keeping home prices high and making loans costly for buyers. Existing home sales fell 1.7% in July to an annualized 4.06 million units as homeowners kept their low-rate loans instead of moving.

Fewer home sales mean fewer buyers spending money on big fix-up projects at Home Depot. Basic store repairs remain steady, but Home Depot shoppers continue to put off big DIY jobs like kitchen and bathroom remodels due to high interest rates and broader money worries.

## **Large Debt and M&A Integration Impact Home Depot's Profit Margins**

Rising debt levels and high business costs are another reason investors stay cautious. Home Depot holds nearly $56 billion in total debt after taking on $10 billion in loans to buy SRS Distribution.

Because of this large debt load, Home Depot's management have stopped buying back shares to focus on paying down loans. Higher shipping costs and potential tariff increases also create risk for the company's gross profit margins.

## **Home Depot's Pro Contractor Business Gives Investors Hope**

Home Depot is growing its pro contractor business to depend less on DIY shoppers. The pro division brings in about half of all company sales, aided by large deals to buy SRS Distribution and GMS.

Pro builders buy tools and supplies for ongoing work, repairs, and building jobs. This work gives Home Depot stable cash flow that relies less on home sales. Investors want to see if pro sales can keep rising to boost overall company numbers.

## **Is Home Depot a Good Stock to Buy?**

According to Wall Street analysts, Home Depot stock (HD) has a Strong Buy consensus, based on 18 Buys and six Holds assigned in the last three months. Home Depot's average 12-month stock price target of $382.71 implies a 13% upside from the current price. (See **HD stock forecast**)

### Related Stocks

- [HD.US](https://longbridge.com/en/quote/HD.US.md)
- [GMS.US](https://longbridge.com/en/quote/GMS.US.md)

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- [Home Depot CEO Takes Medical Leave. What This Means for HD Stock Ahead of Earnings.](https://longbridge.com/en/news/296027317.md)
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- [How To Earn $500 A Month From Home Depot Stock Ahead Of Q2 Earnings](https://longbridge.com/en/news/295694244.md)
- [WMT, HD — 2 Retail Stocks to Buy Ahead of Earnings, According to Analysts](https://longbridge.com/en/news/296029120.md)
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