Can Home Depot's New Pro Tools Accelerate Large-Project Wins?

The Home Depot, Inc. HD has been sharpening its focus on complex, high-value professional work by introducing digital tools that reduce the time and friction contractors face when bidding and executing large projects. Management has introduced two new tools to help contractors plan large projects faster, estimate more accurately and consolidate purchasing.

The first is a project planning tool launched last September that allows Pros to build and manage material lists, track orders and deliveries and coordinate multi-stage procurement. The second, the blueprint takeoff tool, uses artificial intelligence and proprietary algorithms to generate accurate material estimates from construction plans. This technology replaces manual processes that typically took weeks, enabling contractors to purchase entire project requirements from a single supplier in record time.

By positioning itself as a one-stop destination for multi-trade projects, Home Depot is increasing engagement in big-ticket transactions, which grew 2.3% in the third quarter of fiscal 2025. The synergy between specialized wholesale footprints and high-speed digital fulfillment is designed to make the retailer indispensable for pros managing large-scale renovations.

The recent addition of GMS in September 2025, along with the earlier SRS acquisition, has created a substantial wholesale operation spanning categories such as roofing, drywall and steel framing. These strategic moves enable the retailer to capture a large-project wallet share.

What the Latest Metrics Say About Home Depot

Home Depot, which competes with Floor & Decor Holdings, Inc. FND and Lowe's Companies, Inc. LOW, has seen its shares fall 11.2% in the past year compared with the industry’s decline of 16.7%. While shares of Floor & Decor Holdings have declined 35.6%, Lowe’s has fallen 1.2% in the said period.
 

From a valuation standpoint, Home Depot trades at a forward price-to-earnings ratio of 22.96, higher than the industry’s 21.18. HD carries a Value Score of D. Home Depot is trading at a discount to Floor & Decor Holdings (with a forward 12-month P/E ratio of 29.46) but at a premium to Lowe’s (19.05). 
 

The Zacks Consensus Estimate for Home Depot’s current financial-year sales implies year-over-year growth of 3.2%, while the same for earnings per share suggests a decline of 4.8%. For the next fiscal year, the consensus estimate indicates a 4.4% rise in sales and 4.1% growth in earnings.
 

Home Depot currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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