Is Home Depot Stock Underperforming the Nasdaq?

Core Viewpoint - Home Depot is experiencing significant stock underperformance due to softer market expectations for housing and home improvement spending, with its stock declining over various time frames compared to the Nasdaq Composite index [2][4][5]. Financial Performance - Home Depot reported third-quarter fiscal 2025 revenue of $41.35 billion, a 2.8% year-over-year increase, slightly exceeding Wall Street's expectation of $41.21 billion [5]. - The adjusted EPS for Home Depot declined by 1.1% annually to $3.74, falling short of the expected $3.83 [5]. - The stock dropped 6% intraday following the earnings report on November 18 [5]. Stock Performance - Home Depot's stock reached a 52-week low of $326.31 in April but has since increased by 7.6% from that level; however, it has dropped 14.1% over the past three months [2]. - Over the past 52 weeks, Home Depot's stock has declined by 18.1%, and it is down 3.2% over the past six months, while the Nasdaq Composite gained 20.8% and 22.9% in the same periods [4]. Market Conditions - The company is facing a challenging operating environment, with a lack of storm activity impacting specific product categories and ongoing consumer uncertainty affecting performance [6]. - Home Depot anticipates continued pressure in the fourth quarter due to these factors [6]. Competitive Comparison - Compared to Lowe's Companies, Inc., which has dropped 13.5% over the past 52 weeks but gained 7.7% over the past six months, Home Depot has been the clear underperformer [7].