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Home Depot experienced a flat price movement over the past week, amidst a backdrop two shareholder proposals on corporate governance and sustainability, which the company recommended voting against ahead of its annual meeting on May 22, 2025. At the same time, broader market volatility, driven by heightened uncertainties around new tariffs, saw the market dip significantly, with the Dow Jones index dropping sharply. This general market turbulence likely influenced Home Depot's share performance as investors weighed the impact of macroeconomic pressures on businesses across sectors.

Be aware that Home Depot is showing 1 risk in our investment analysis.

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The Home Depot Inc received several shareholder proposals ahead of its May 22 annual meeting. One requested a report on making all packaging recyclable, reusable, or compostable. Another requested a biodiversity impact and dependency assessment covering the company’s full value chain. The Home Depot has recommended that shareholders vote against both proposals.

Over a longer period, Home Depot shares have shown strong resilience, delivering a roughly 98.02% total return, including dividends, over five years. This performance underscores the company's ability to thrive and provide substantial shareholder value over time. However, in the past year, Home Depot's earnings have not matched the expansion seen historically and have shown limitations compared to the wider US Specialty Retail industry, which experienced a 0% return.

Analysts have forecasted annual revenue growth of 3.8% and a modest increase in profit margins. If interest rates and macroeconomic uncertainties persist, these projections might face constraints. Despite this, the company might still achieve a degree of revenue and earnings growth through its investments in the Pro ecosystem and SRS expansion.

Home Depot's current share price of US$365.52 is below the consensus analyst price target of US$431.50, presenting a potential upside of 15.3%. While this indicates room for appreciation, sharing a healthy dose of scrutiny from investors on stock valuations versus market conditions is critical. This discount to the price target highlights investor hesitance, potentially affected by the ongoing macroeconomic challenges.

Click to explore a detailed breakdown of our findings in Home Depot's financial health report.