• Home Depot is contending with fresh competition as China-based home improvement brand Vevor enters the U.S. via a Houston store, while simultaneously expanding its Path to Pro workforce program to tackle skilled labor shortages that hinder post-disaster rebuilding.

• Together with softer earnings expectations and a tougher retail backdrop, these moves highlight how Home Depot is juggling margin pressure, labor constraints, and long-term demand for professional-grade building products.

• We’ll now examine how Vevor’s U.S. entry reshapes Home Depot’s investment narrative, particularly its competitive positioning in a pressured home improvement market.

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To own Home Depot today, you have to believe its mature, cash-generative model can keep earning its premium valuation even as growth slows and competition stiffens. The core near-term catalysts still sit around execution on digital tools for Pros, integration of past acquisitions like SRS and GMS, and whether upcoming earnings can steady sentiment after several recent misses. Against that backdrop, Vevor’s Houston entry looks more like an early warning on pricing and category competition than a thesis-changing shock, while the Adirondack chair recall is reputationally uncomfortable but unlikely to be financially material. The expanded Path to Pro program, though, speaks directly to one of Home Depot’s biggest operational risks: persistent skilled labor shortages that can delay projects and mute demand.

However, the tightrope between premium pricing, rising competition and high debt is one investors should see clearly. Home Depot’s share price has been on the slide but might be up to 34% below fair value. Find out if it’s a bargain.

Seven Simply Wall St Community fair value estimates span roughly US$280 to US$394 per share, reflecting very different expectations. Set that against Home Depot’s slowing earnings growth, mounting competition and reliance on high debt, and you can see why it pays to compare several viewpoints before deciding what the stock is really worth.

Explore 7 other fair value estimates on Home Depot – why the stock might be worth as much as 5% more than the current price!

Disagree with this assessment? Create your own narrative in under 3 minutes – extraordinary investment returns rarely come from following the herd.

• A great starting point for your Home Depot research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

• Our free Home Depot research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate Home Depot’s overall financial health at a glance.