The Home Depot Inc. HD is witnessing encouraging traction from investments aimed at helping professional customers handle larger and more complex purchases. In the second quarter of fiscal 2026, Pro sales posted positive comps and outperformed DIY, with strength across Pro-heavy categories, including portable power, decking, dimensional lumber, pipe and fittings, fasteners, hand tools, and concrete.
The key part of the strategy is expanding the capabilities available to Pros beyond the traditional store experience. Home Depot has invested in order management, delivery, B2B digital tools and project-planning capabilities. The company said that it achieved its highest levels of on-time and complete performance for flatbed and box-truck deliveries, while tools such as project planning and the AI-powered Material List Builder are helping Pros organize deliveries, build material lists and purchase more.
Home Depot is also using its SRS and GMS acquisitions to broaden the product catalog available to professional customers. Through QuoteCenter, store associates can now access the SRS catalog and close more sales within the Home Depot ecosystem. In the past 12 months, 90% of Home Depot stores have completed a sale through SRS. The company is also capturing incremental sales from homebuilders, commercial customers and remodelers.
These investments suggest Home Depot is gaining traction in complex Pro purchases. However, the transcript also makes clear that larger discretionary projects remain under pressure, meaning the progress is currently more visible in Pro wallet share and project capabilities than in a broad recovery in large-project demand across the broader home improvement market at this stage.
How Are LOW & FND’s Pro Investments Helping?
Lowe’s Companies Inc. LOW and Floor & Decor Holdings Inc. FND are strengthening their Pro-focused capabilities as they seek to capture greater spending from professional customers and deepen engagement across larger, more complex projects.
Lowe’s Pro investments are supporting performance by improving service, fulfillment and digital capabilities for small and medium-sized professional customers. In the second quarter of fiscal 2026, Pro delivered another quarter of growth as Lowe’s focused on time, availability and value. Its digital Pro tools and MyLowe’s Pro Rewards help customers plan, quote and manage jobs, while FBM and ADG broaden Lowe’s reach with larger Pros and planned project spending opportunities.
Floor & Decor’s Pro investments are supporting performance by deepening share of wallet and improving convenience for professional customers. In the second quarter of 2026, Pro sales grew about 4% and represented roughly 55% of total sales. Installation materials remained a key growth driver, supported by supply-house strategies, while store expansion and dedicated commercial account managers are helping broaden customer reach and strengthen relationships with Pros across markets and project needs over time.
HD’s Price Performance, Valuation & Estimates
Shares of Home Depot have lost 27.7% in the past year versus the industry’s decline of 31.9%.
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From a valuation standpoint, HD trades at a forward price-to-earnings ratio of 18.97X compared with the industry’s average of 17.47X.
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The Zacks Consensus Estimate for HD’s fiscal 2026 and 2027 earnings per share (EPS) implies year-over-year growth of 2.1% and 6.9%, respectively. The company’s EPS estimate for fiscal 2026 has moved up by a penny in the past 30 days. Meanwhile, the consensus estimate for fiscal 2027 EPS has moved down 0.4% in the past 30 days.
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Home Depot currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The Home Depot, Inc. (HD): Free Stock Analysis Report
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Floor & Decor Holdings, Inc. (FND): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).