HD Stock Outlook: What Truist's Bullish Call Means for Investors in 2025

The company's management recently announced the acquisition of GMS Inc.—a key supplier of finishing materials for commercial and residential construction—at a price tag of $5.5 billion. This deal, which came in slightly above fair value, underscores the competitive intensity in the building materials market. Industry sources report that QXO Inc., a major distributor, submitted a last-minute bid of $95.00 per GMS share, pushing Home Depot to pay a premium in order to secure the deal.

Following the acquisition, analysts at Truist Securities reaffirmed their “Buy” recommendation and maintained a $417.00 target price on Home Depot’s stock, signaling continued confidence in the company’s growth strategy. Investors are now turning their focus to the Q2 2025 earnings release set for August 19. Current consensus expects revenue to reach $45.54 billion—well above the $43.18 billion posted a year earlier—while earnings per share (EPS) are projected at $4.73, surpassing last year’s $4.67.

The next dividend payment date is still pending. The most recent payout occurred on June 18, with a distribution of $2.30 per share, representing a quarterly yield of 2.47%—notably higher than the sector’s median yield of 1.71%.

Technical Overview: Key Levels and Trading Scenarios

On the daily chart, HD stock is consolidating just below the upper resistance band of its dynamic channel ($375.00–$320.00). Technical indicators remain cautiously optimistic: fast EMAs in the Alligator indicator are positioned above the signal line, while the Awesome Oscillator (AO) histogram is forming corrective bars, but remains in positive territory.

• Support levels: $358.00, $332.00
• Resistance levels: $375.00, $396.00

Trading Scenarios

• Bullish scenario: Consider long positions above $375.00, targeting $396.00 with a stop-loss at $360.00. (Timeframe: 7+ days)
• Bearish scenario: Short positions may be opened below $358.00, targeting $332.00 with a stop-loss at $369.00.