Cheng Xin via Getty Images<\/p>\n<\/figcaption><\/figure>\n The company has deployed more than $24 billion across recent acquisitions, including SRS Distribution, Gypsum Management & Supply, and Mingledorff\u2019s, according to the report.<\/p>\n Those deals give Home Depot more exposure to specialty trade contractor categories, including roofing, drywall, HVAC, landscape, and pool distribution. BofA said the acquisitions help Home Depot better address a Pro total addressable market of about $700 billion.<\/p>\n SRS remains the most important of the recent deals. Home Depot completed its $18.25 billion acquisition of SRS in June 2024, adding a specialty distributor with exposure to roofing, landscape, and pool markets. BofA said SRS accounted for $12.7 billion of Home Depot\u2019s reported other net sales in fiscal 2025, compared with $6.4 billion in fiscal 2024.<\/p>\n The firm said roofing volumes within SRS were significantly depressed in 2025, partly because there were no major hurricanes and the business lapped stronger storm-driven demand from the prior year. If storm activity normalizes, BofA sees potential upside leverage as acquired volumes recover.<\/p>\n Home Depot also acquired GMS for $5.5 billion in September 2025, adding drywall distribution and a new interior construction vertical to SRS. BofA said GMS has more than 320 distribution centers and 100 tool rental and service centers in the U.S. and Canada.<\/p>\n The bullish case still comes with a debate. BofA said investors are focused on whether acquisition-related dilution masks Home Depot\u2019s underlying earnings power, especially while demand remains weak.<\/p>\n The firm expects recent M&A to pressure margins in 2026, including a 20-basis-point decline in gross margin and operating margin tied to the GMS acquisition and more muted comparable sales expectations. BofA models 1.5% comp growth in 2026 before a 3.5% comp growth forecast in 2027.<\/p>\n The housing backdrop remains mixed. BofA said affordability continues to pressure categories tied to larger remodeling projects, including kitchens, baths, windows, millwork, and flooring. Housing turnover also remains depressed, with existing home sales still below the long-term average.<\/p>\n At the same time, the firm pointed to record homeowner equity as a potential source of funding for larger home improvement projects over time. BofA said U.S. homeowners have $34.1 trillion of equity in their homes, which could eventually help finance more complex renovations.<\/p>\n BofA\u2019s price objective is based on 23 times its fiscal 2027 earnings estimate, a slight premium to the long-term average of 20 times. The firm said that valuation is supported by a multiyear earnings acceleration forecast and Home Depot\u2019s stronger Pro positioning.<\/p>\n The firm estimates Home Depot\u2019s adjusted EPS will fall 3.6% in fiscal 2026 before rising 2.6% in fiscal 2027 and 7.9% in fiscal 2028. BofA also expects Home Depot to return to its target leverage ratio of 2.0 times by the end of fiscal 2027.<\/p>\n Home Depot\u2019s near-term path still depends on housing demand, weather activity, and the integration of recent acquisitions. BofA\u2019s view is that the company has positioned itself to benefit more than its peers when those trends improve.<\/p>\n Related: Home Depot makes moves to fix key customer problem<\/strong><\/p>\n #BofA #sees #room #Home #Depot #shares<\/p>\n","protected":false},"excerpt":{"rendered":" Home Depot has spent the past few years trying to build a larger business around professional contractors, and Bank of America says that shift could give the home improvement retailer… <\/p>\n","protected":false},"author":1,"featured_media":2025,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[246],"tags":[2763,1988,232,3546,1006,32],"class_list":["post-2024","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-popular","tag-bofa","tag-depot","tag-home","tag-room","tag-sees","tag-shares"],"_links":{"self":[{"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=\/wp\/v2\/posts\/2024","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2024"}],"version-history":[{"count":0,"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=\/wp\/v2\/posts\/2024\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=\/wp\/v2\/media\/2025"}],"wp:attachment":[{"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2024"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2024"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2024"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![](\"https:\/\/www.thestreet.com\/.image\/NDA6MDAwMDAwMDAyOTg0MTM1\/the-home-depot-logo-shown-on-smartphone-with-stock-market-chart.jpg?io=1&profile=rss\"){kind=logo}
Recent deals expand Home Depot\u2019s reach<\/h2>\n
More Home Depot<\/h3>\n
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Housing remains the swing factor<\/h2>\n
Home Depot still has a recovery path<\/h2>\n