Home Depot Faces Challenges; Stocks Like Owens Corning Shine

Investors are weighing their options as Home Depot's growth looks limited with only 1% EPS growth expected in 2025. Alternatives such as Owens Corning present a stronger risk/reward profile, especially with its solid cash flow and recent acquisition strategy.

Date: 08-03-2025

AI Rating: 5

Market Sentiment: This report highlights the current market dynamics faced by Home Depot and other home improvement companies. Investors considering Home Depot may find it prudent to evaluate alternative stocks within the housing sector that could offer more favorable growth opportunities.

Earnings Per Share (EPS): Home Depot's anticipated earnings per share (EPS) growth is projected at only 1% for 2025, followed by a more optimistic 10% in 2026. This slow growth may create bearish sentiment around Home Depot's stock as investors may be looking for stronger growth prospects elsewhere.

Free Cash Flow (FCF): Whirlpool anticipates generating between $500 million to $600 million in free cash flow in 2025, which could be pivotal for its debt management strategy. The company's ability to manage its debt while generating free cash may appeal to risk-tolerant investors looking for recovery potential in the housing market.

Additional Comparisons: The contrasting strategies of Stanley Black & Decker and Owens Corning emphasize their positioning in the market. While Stanley has struggled to manage inventory and faces uncertainty with tariffs, Owens Corning demonstrates a proactive approach and has successfully generated $1.2 billion in free cash flow in a challenging market.

Stock prices may be positively impacted as investors digest the varying strengths of these companies, especially Owenson Corning’s robust approach to capitalizing on the housing market. The cautious outlook for Home Depot might lead potential investors to consider diversifying into these alternative stocks with better risk/reward scenarios.

Stocks: HD WHR SWK OC