How AI Blueprint Takeoffs Help Home Depot Win Pro Market

The Home Depot, Inc. HD is sharpening its competitive edge in the complex Pro market by deploying advanced artificial intelligence to simplify large-scale project planning. The major part of this initiative is the rollout of AI-powered blueprint takeoffs, designed to transform how professional contractors prepare for large projects. This tool uses proprietary algorithms to provide professionals with accurate material estimates and takeoffs in record time. Earlier, it took weeks to do a similar exercise. 

By digitizing the workflow, Home Depot increases the reliability and accuracy of the planning phase. The integration of AI allows the company to differentiate its offering from competitors while serving as a one-stop destination for professional needs. Pros working on complex projects can now move seamlessly from initial planning to material delivery within a single ecosystem. This efficiency saves professionals both time and money, which are critical factors in the competitive building industry. 

Home Depot’s Material List Builder AI tool helps professional renovators, remodelers, builders and specialty tradespeople generate detailed material lists for projects much faster. The tool interprets project requirements and generates a precise, comprehensive list of materials for the entire job, helping professionals stay on schedule and within budget. The feature is available free to all Pro Xtra members through Home Depot’s Project Planning platform, a digital solution that simplifies how professionals plan, manage, and execute complex construction and remodeling projects.

The company is seeing positive traction as customers engage with these new capabilities. By transforming a traditionally slow process into a rapid digital experience, Home Depot is fostering customer loyalty, positioning itself to win a larger share of the professional market.

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 rise 11.1% year to date compared with the industry’s 12.5% growth. While shares of Floor & Decor Holdings have jumped 13.3%, Lowe’s has advanced 16.3% in the same period.
 

From a valuation standpoint, Home Depot trades at a forward price-to-earnings ratio of 25.13, higher than the industry’s 22.98. 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 31.68) but at a premium to Lowe’s (21.40). 
 

The Zacks Consensus Estimate for Home Depot’s current financial-year sales implies year-over-year growth of 3.3%, while the same for earnings per share suggests a decline of 4.9%. For the next fiscal year, the consensus estimate indicates a 4.2% rise in sales and 4.3% growth in earnings.
 

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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research