HD Stock Today: January 01 — Trump Delays Furniture Tariff Hike
Home Depot stock today is in focus after the White House delayed an increase on furniture and kitchen cabinets tariffs to 2027, keeping rates at 25%. For Canadian investors, the move may ease near-term cost pressure on cross-border supply. Shares of HD last closed at $344.10 USD, down 0.65% on the day. We look at pricing, margins, and demand signals that matter for Home Depot Canada and U.S. operations, plus analyst targets, technicals, and what to watch into the next earnings report.
Tariff delay: what changed and why it matters
The administration postponed the 2026 hike on upholstered furniture, kitchen cabinets, and vanities to 2027, keeping current US import tariffs at 25%. This extension reduces near-term input cost risk for big-box retailers and suppliers. It may modestly temper inflation in related categories. For context and confirmation, see reporting from CNN and Reuters.
Stable tariff rates give merchandising teams clearer visibility on landed costs and promotions. That can support steadier gross margins if freight stays contained. For Home Depot stock today, the key watch is whether vendors pass through fewer price increases, easing markdown pressure while preserving traffic. Category winners could include indoor seating, vanities, and kitchen storage.
Many Canadian shoppers buy goods sourced via U.S. import flows. A delay in higher duties can limit cost pass-through on comparable SKUs sold in Canada, even with currency swings. It could also support renovation budgets tied to kitchens and baths. We think inventory planning may shift toward higher-ticket items if price stability holds through 2026.
Fundamentals, valuation, and Street view
HD trades at a price-to-earnings ratio of 23.49 with a dividend yield near 2.66% and an enterprise-value-to-EBITDA of 15.97. Free cash flow per share is 14.04. Gross margin is 33.36% and operating margin is 12.96%. Debt-to-equity is high at 4.87, so interest coverage of 8.77 remains important. For Home Depot stock today, the mix of strong returns and leverage requires steady cash generation.
Analysts show 18 Buys and 6 Holds, with a consensus target at $409.21, median $411.50, and a range of $320 to $497. A separate composite rating in 2025 marked HD as Neutral, while an aggregate stock grade now is A with a BUY suggestion. For Canadian investors, we would track estimate revisions and tariff commentary ahead of earnings on February 24, 2026.
Price action and technical setup
HD closed at $344.10 USD, below its 50-day average of $361.25 and 200-day average of $373.18. RSI is 42.75, showing mild weakness. ADX at 15.07 signals no strong trend. MACD histogram is slightly positive at 0.17, hinting at stabilization. For Home Depot stock today, bulls need sustained closes above the 50-day to improve the setup.
ATR is 7.03, indicating moderate daily swings. Bollinger Bands sit near 360.94 upper and 342.03 lower, with price hugging the lower band. Keltner lower channel is 337.10, a potential downside marker. The 1-year range is $326.31 to $426.75. A weekly hold above $343 to $345 would help base-building, while a break under $337 risks a test of the 1-year low.
Key watch items for margins and demand
With furniture tariffs delay in place, vendors may lock in steadier pricing through 2026. That can support HD’s gross margin if freight remains manageable. Monitor inventory days, vendor terms, and promotions in kitchen cabinets, vanities, and indoor seating. For Home Depot stock today, flatter input costs could reduce markdowns and protect category profitability.
Renovation spend often follows housing turnover and equity. We will watch existing home sales and mortgage rates into spring. Earnings on February 24, 2026 will spotlight guidance for comps, gross margin, and capex. Commentary on kitchen cabinets tariffs, vendor negotiations, and private-label strategy will matter for both U.S. and Canadian store performance.
Final Thoughts
The tariff hike delay to 2027 keeps current rates at 25% on furniture and kitchen cabinets, easing one source of cost pressure for the next year. For investors, the focus is practical: watch vendor pricing, inventory turns, and promo cadence in cabinets, vanities, and indoor seating. HD trades below its 50-day and 200-day averages, with momentum mixed but stabilizing. Analyst targets sit well above the last close, though leverage and traffic quality deserve attention. Into the February 24, 2026 earnings call, track any margin commentary tied to US import tariffs and category mix. For Canadian investors, keep an eye on FX, housing turnover, and cross-border price pass-through.
FAQs
Keeping tariffs at 25% through 2026 reduces near-term cost uncertainty in categories like furniture and kitchen cabinets. It may support gross margins if vendors pass through fewer price increases and freight stays stable. Watch inventory days and promotions in cabinets, vanities, and indoor seating for margin signals.
HD last closed at $344.10 USD. The analyst consensus target is $409.21, with a median of $411.50 and a range of $320 to $497. The spread suggests upside if execution improves, but investors should monitor margins, traffic, and guidance into the February 24, 2026 earnings report.
Technicals are mixed. Price is below the 50-day and 200-day averages, RSI sits near 43, and ADX indicates no strong trend. The Bollinger lower band is close to spot, so a firm hold above $343 to $345 would help. A break under $337 could invite a test of the 1-year low.
Focus on cross-border price pass-through in cabinets and furniture, FX effects on Canadian shelf prices, and housing turnover heading into spring. Earnings commentary on tariff impacts, vendor terms, and private-label mix will be key for Canadian margins. Keep an eye on inventory days and promotional intensity in key categories.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
