The Home Depot, Inc. (HD) Remains a Key Pick as TD Cowen Updates Hardlines Outlook

The Home Depot, Inc. (NYSE:HD) is included among Dividend Contenders List: Top 20 Stocks.

On January 20, TD Cowen analyst Max Rakhlenko raised the firm’s price target on The Home Depot, Inc. (NYSE:HD) to $450 from $410 and maintained a Buy rating on the stock. The update came as TD Cowen adjusted price targets across the hardlines group. Within that coverage list, the firm’s top idea is Planet Fitness, followed by Home Depot and O’Reilly Automotive.

A CNBC report highlighted how Home Depot is using AI tools to appeal more directly to professional contractors. Timothy Ellsberry, an Atlanta-based custom homebuilder, told CNBC he was impressed with the company’s recent efforts. Ellsberry joined Home Depot’s Pro program in late 2024 and stated that he has been reviewing the company’s expanding suite of digital tools, although he has not yet fully adopted them.

One of the newer offerings is AI-powered BluePrint Takeoffs, which launched in November. The tool is designed to quickly produce takeoffs, meaning full lists of materials and resources needed to build project quotes. It also lets contractors purchase those items directly through Home Depot, keeping the workflow in one place.

CNBC also pointed to a longer-term benefit from Home Depot’s 2024 acquisition of SRS Distribution. The trade credit system gained through the deal is seen as an underappreciated advantage, helping Home Depot reach more contractors. Trade credit allows contractors to buy supplies and pay later, which can improve cash flow for growing businesses. Home Depot says combining that credit offering with AI tools like BluePrint Takeoffs could make it easier for professionals to scale their operations.

The Home Depot, Inc. (NYSE:HD) is a home improvement specialty retailer that sells building materials, home improvement products, lawn and garden items, décor, and maintenance, repair, and operations supplies through both stores and online channels.

While we acknowledge the potential of HD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.