ZACKS·2025-12-29 15:35Core Insights - Home Depot has expanded its professional market reach through the acquisition of GMS, enhancing its multi-category distribution model and customer relationships [1][2] Group 1: Acquisition Impact - The acquisition of GMS, a distributor of specialty building products, allows Home Depot to leverage GMS' product categories and customer relationships, positioning the company as a one-stop shop for complex professional projects [2][3] - GMS contributed approximately $900 million in sales during the first eight weeks of the third quarter, with expectations of about $2 billion in incremental sales for fiscal 2025 [2][3][8] - The integration broadens Home Depot's total addressable market within the professional segment, focusing on specialized building products to better serve professional contractors [3][4] Group 2: Financial Performance - Home Depot's shares have declined by 10.1% over the past year, while the industry has seen a decline of 15.7% [5] - The company trades at a forward price-to-earnings ratio of 23.24, higher than the industry average of 21.14, and carries a Value Score of F [6] - The Zacks Consensus Estimate for Home Depot's current financial-year sales implies a year-over-year growth of 3.2%, while earnings per share are expected to decline by 4.8% [9]