Home Depot (HD) Faces Sluggish Demand Trends, Says Piper Sandler

Vardah Gill

Mon, May 18, 2026 at 5:33 PM EDT 2 min read

The Home Depot, Inc. (NYSE:HD) is included among the 10 Best “Dogs of the Dow” Stocks to Buy for the Rest of 2026.

On May 15, Piper Sandler lowered its price recommendation on The Home Depot, Inc. (NYSE:HD) to $421 from $422. It reiterated an Overweight rating on the shares. The firm said investors have become increasingly concerned about consumer discretionary spending, particularly as higher gas prices continue to pressure household budgets. Even so, consumer spending has remained relatively resilient. Piper Sandler noted that tax refunds stood out during the first quarter, though there has been little clear evidence that the extra cash flowed into retail spending. The firm believes many middle- and upper-income consumers likely chose to save those funds instead. In home improvement, sluggish demand trends that appeared during the fourth quarter seem to have continued into the new year.

A day earlier, on May 14, Wells Fargo lowered its price target on Home Depot to $375 from $420 and kept an Overweight rating on the stock. The firm said discretionary retail remains out of favor with investors, while recent industry checks pointed to softer conditions. Wells Fargo added that companies guiding toward stronger performance in the second half of the year are facing skepticism from the market. The note also said that nearly every company covered in Wells Fargo’s Hardlines sector has declined year-to-date as hopes for stimulus fade, oil prices rise, and broader spending trends remain weak.

The Home Depot, Inc. (NYSE:HD) sells home improvement products, building materials, lawn and garden supplies, décor products, and maintenance and repair items through its stores and online platforms.

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