Should You Buy Home Depot Stock Before Nov. 17?

Home Depot (NYSE:HD) stock has been struggling this year, falling by 10% thus far in 2026. Investors are concerned about its future growth, as consumers are spending less due to inflation and are more cautious in taking on home renovation projects, which the retailer thrives on.

The retail stock, however, is trading at a reduced valuation, and expectations may be low heading into its upcoming earnings release, for the third quarter, which is scheduled for Nov. 17. Here's why buying the stock before those numbers come out could be a good move for investors.

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There have been signs of improvement for the business

Home Depot's growth rate hasn't been strong in recent years, and there have been multiple quarters where its top line declined on a year-over-year basis. The good news, however, is that in its most recent quarter, the growth rate was back up to just under 6%.

HD Revenue (Quarterly YoY Growth) data by YCharts

With home repair projects and maintenance, those items can often only be delayed for so long before consumers feel little choice but to take them on. It's that long-term necessity of these types of expenditures that makes it highly likely that Home Depot's business will recover from any downturn in its growth. The company is, after all, a trusted brand that people turn to for not only tools and equipment but also home repair and renovation advice.

The stock's low valuation makes now an excellent time to buy

I'm not going to try to predict that this coming earnings report will feature another strong quarter from Home Depot. It may end up seeing a slowdown in its growth rate compared to last quarter. But I do know that with this being a quality business, and its stock trading at a reasonable valuation of 21 times its trailing earnings (which is lower than the S&P 500 average of 23), now can be an opportune time to buy it.

Maybe Home Depot does better than expected in Q3, maybe not. But it's the long game that matters. And with Home Depot being an excellent retailer with a solid brand, for long-term investors, buying it when it's trading at a reasonable valuation can set them up for terrific long-term returns. The stock's 3% yield only sweetens the deal for investors, as does the fact that the company has paid a dividend for 158 consecutive quarters and been a reliable income stock for investors to rely on for many years.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool has a disclosure policy.