Core Insights - Home Depot, Inc. (HD) is reinforcing its long-term growth outlook through a disciplined capital allocation framework, demonstrating resilience in a softer demand environment while prioritizing investments to strengthen its competitive position and return cash to shareholders [1] Capital Expenditure - In Q3 of fiscal 2025, Home Depot invested approximately $900 million in capital expenditures focused on store expansions, supply-chain enhancements, and technology upgrades to improve productivity and customer experience [2] - For fiscal 2025, capital expenditure is expected to be 2.5% of sales, indicating a commitment to strengthening core infrastructure and advancing an interconnected retail strategy [2] Financial Performance - Home Depot reported $1.68 billion in cash and cash equivalents at the end of Q3, with operating cash flow totaling $13 billion for the first nine months of fiscal 2025, reflecting strong earnings generation and effective working capital management [3] - The company paid out $2.3 billion in dividends during the fiscal third quarter, with a quarterly dividend of $2.30 per share announced on Nov. 20, highlighting consistent capital returns to shareholders [4] Long-term Financial Framework - Home Depot's return on invested capital was 26.3% at the end of Q3, with current investments viewed as foundational for improving returns over time [5] - The company maintains a dividend payout ratio of 61%, an annualized dividend yield of 2.4%, and a free cash flow yield of 3.6%, reflecting a balanced focus on reinvestment and shareholder value creation [5] Market Performance - Home Depot's shares have increased by 17% over the past three months, compared to the industry's growth of 18.8% [12] - The Zacks Consensus Estimate for Home Depot's current financial-year sales implies a year-over-year growth of 3.3%, while earnings per share are expected to decline by 4.9% [14]

Home Depot is making the requirements for bonus payouts to managers more strict as the retailer confronts a business slowdown. https://t.co/08A1HNRnp4 ...

Core Insights - The Home Depot, Inc. (NYSE:HD) is highlighted as one of the best lumber stocks to invest in, with a recent price target increase from Truist to $405 from $390, supported by stable sales trends and positive consumer data [1] - In Q3 2025, The Home Depot reported sales of $41.4 billion, reflecting a year-over-year increase of 2.8%, with U.S. comparable sales rising by 0.1% [3] - The company has updated its fiscal 2025 guidance to approximately 3% total sales growth, indicating resilience despite challenges in the housing market [3] Company Overview - Founded in 1978 and headquartered in Atlanta, Georgia, The Home Depot is one of the largest home improvement retailers globally, with lumber and building materials accounting for roughly 35% of its sales [4] - The company's stock is highly sensitive to lumber prices and the housing market, positioning it as a significant player in the building materials sector [4] Financial Performance - Adjusted diluted EPS for Q3 2025 was reported at $3.74, slightly down from $3.78 a year ago, indicating stable earnings performance [3] - The Home Depot's resilience is attributed to its scale, merchandising strength, and disciplined cost management, which are crucial in navigating housing market headwinds [3]

Core Insights - The equity market experienced a positive trend in 2025, with the S&P 500 Index returning 2.7% in Q4 and finishing the year up 17.9% [1] - The market's performance was influenced by strong AI investments, clarity in policies, and U.S. Federal Reserve interest rate cuts [1] - Carillon Eagle Growth & Income Fund holds net assets of $493.06 million across 48 holdings, indicating a diversified investment strategy [1] Company-Specific Insights - The Home Depot, Inc. (NYSE:HD) reported a one-month return of 3.04%, but its shares declined by 5.27% over the last 52 weeks, closing at $390.68 per share with a market capitalization of $388.926 billion on February 11, 2026 [2] - The Home Depot's recent performance was impacted by weaker-than-expected same-store sales, despite previous weather-related boosts [3] - The company is not among the 30 Most Popular Stocks Among Hedge Funds, with 104 hedge fund portfolios holding its stock at the end of Q3, up from 93 in the previous quarter [4]

Market Overview - The Dow Jones Industrial Average increased by 52.27 points (0.10%) to reach 50,188.14, continuing its record-setting streak [1] - The market sentiment is influenced by a mix of weak economic data and expectations regarding the Federal Reserve's monetary policy, alongside varied corporate earnings reports [1] Economic Indicators - Disappointing retail sales data for December 2025 indicated that consumer spending remained nearly flat, raising concerns about a slowdown in U.S. economic growth [1] - Upcoming U.S. jobs data and the Consumer Price Index (CPI) for January 2026 are anticipated to provide further insights into the economic outlook and the Fed's interest rate decisions [2] Company Performance - Walt Disney Company (DIS) saw a significant gain, rising 2.52% to $109.96 [3] - Home Depot (HD) increased by 2.28% to $389.68, and Travelers Companies Inc. (TRV) rose by 1.98% to $298.61 [3] - Amgen Inc. (AMGN) was the largest decliner, falling 2.88% to $364.65, followed by IBM (IBM) with a drop of 1.55% to $291.76, and Coca-Cola Co. (KO) down 1.40% to $76.81, reflecting pressure from mixed earnings reports [3]

Core Viewpoint - Building-products distributor QXO, led by billionaire dealmaker Brad Jacobs, has agreed to acquire Kodiak Building Partners for approximately $2.25 billion [1] Company Summary - QXO is a significant player in the building products distribution sector, indicating its growth strategy through acquisitions [1] - Kodiak Building Partners is a smaller private distributor, suggesting that QXO is targeting expansion into niche markets or enhancing its product offerings [1] Financial Summary - The acquisition deal is valued at around $2.25 billion, highlighting QXO's financial capability and willingness to invest in growth opportunities [1]

Core Viewpoint - The Home Depot will host its Fourth Quarter and Fiscal Year Earnings Conference Call on February 24, 2026, at 9 a.m. ET, providing insights into its financial performance and future outlook [1] Company Overview - The Home Depot is the world's largest home improvement retailer, operating 2,356 retail stores and over 1,200 SRS locations across the U.S., Canada, and Mexico [1] - The company employs over 470,000 associates and is publicly traded on the New York Stock Exchange under the ticker symbol HD [1] - The Home Depot is included in the Dow Jones Industrial Average and the Standard & Poor's 500 index [1] Event Details - The earnings conference call will be accessible via a webcast, with a replay available starting at approximately noon on February 24 [1]

Core Insights - The Home Depot, Inc. is focusing on creating a comprehensive multi-category Pro network to address complex professional jobs amid macroeconomic uncertainty and housing market pressures [1] Group 1: Strategic Initiatives - The company is expanding digital tools specifically designed for complex Pro projects, including a project planning tool and an AI-driven blueprint takeoff tool to streamline the bidding and execution process for contractors [2] - The acquisition of GMS enhances Home Depot's ecosystem, contributing approximately $900 million in sales during eight weeks of the third quarter and expected to add about $2 billion in incremental sales in fiscal 2025 [3] Group 2: Market Position and Performance - Home Depot's emphasis on the Pro segment is crucial as it tends to be more resilient and generates higher transaction volumes compared to the DIY consumer segment, marking a significant shift in the company's operational model [4] - The company's shares have decreased by 6.9% over the past year, while the industry has seen an 11.7% decline, with competitors like Floor & Decor Holdings experiencing a 29.9% drop and Lowe's Companies showing an 8.6% increase [5] Group 3: Financial Metrics - Home Depot's forward price-to-earnings ratio stands at 25.38, higher than the industry's 23.19, indicating a Value Score of D, trading at a discount to Floor & Decor Holdings but at a premium to Lowe's [8] - The Zacks Consensus Estimate for Home Depot's current financial-year sales suggests a year-over-year growth of 3.3%, while earnings per share are expected to decline by 4.9% [9] - Sales estimates for the current year are projected at $164.69 billion, with a year-over-year growth estimate of 3.25%, and for the next fiscal year, sales are expected to rise by 4.25% [10]

Core Insights - The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) is a passively managed ETF launched on December 16, 1998, designed to provide broad exposure to the Consumer Discretionary - Broad segment of the equity market [1] - The ETF has become increasingly popular among retail and institutional investors due to its low costs, transparency, flexibility, and tax efficiency [1] Fund Overview - Sponsored by State Street Investment Management, XLY has over $23.14 billion in assets, making it the largest ETF in the Consumer Discretionary - Broad segment [3] - The ETF aims to match the performance of the Consumer Discretionary Select Sector Index, which represents the consumer discretionary sector of the S&P 500 Index [3] Cost Structure - XLY has annual operating expenses of 0.08%, positioning it as one of the least expensive ETFs in its category [4] - The ETF offers a 12-month trailing dividend yield of 0.8% [4] Sector Exposure and Holdings - The ETF is fully allocated to the Consumer Discretionary sector, minimizing single stock risk through diversified exposure [5] - Amazon.com Inc (AMZN) constitutes approximately 23.76% of total assets, with Tesla Inc (TSLA) and Home Depot Inc (HD) also among the top holdings; the top 10 holdings represent about 70.25% of total assets [6] Performance Metrics - As of February 9, 2026, XLY has experienced a loss of about 1.19% year-to-date but is up approximately 3.39% over the past year [7] - The ETF has traded between $88.17 and $124.52 in the last 52 weeks, with a beta of 1.25 and a standard deviation of 20.44% over the trailing three-year period, indicating medium risk [7] Alternatives - XLY carries a Zacks ETF Rank of 3 (Hold), suggesting it is a viable option for investors seeking exposure to the Consumer Discretionary sector [8] - Other ETF options in this space include iShares U.S. Home Construction ETF (ITB) and Vanguard Consumer Discretionary ETF (VCR), with respective assets of $3.04 billion and $6.20 billion [10]

Company Overview - The Home Depot, Inc. (NYSE:HD) has seen its shares decline by 5.5% over the past year, while experiencing an increase of 11.3% year-to-date [2] - UBS has reiterated a Buy rating for Home Depot with a price target of $430 per share, suggesting potential for improved performance as market conditions enhance [2] Market Sentiment - Jim Cramer has expressed confidence in Home Depot, indicating a desire to own the stock despite the challenges faced by the homebuilding sector [2][3] - Cramer noted the impact of high interest rates on the sector, suggesting that lower interest rates could benefit Home Depot's stock performance [2] Investment Perspective - While acknowledging Home Depot's potential, there is a belief that certain AI stocks may offer greater returns with limited downside risk [3] - Cramer’s charitable trust owns Home Depot, and he believes the stock is on the path to recovery, partly due to expectations surrounding Kevin Warsh's influence on the industry [3]