Home Depot (HD) Stock Rallies 3.35% in Four-Day Surge on $5.5B GMS Acquisition Integration

The Home Depot (HD) shares rose to their highest level since September 2025 on Wednesday, with an intraday gain of 0.39%. The stock has climbed 3.35% over four consecutive trading sessions, extending a modest upward trend amid strategic moves and investor confidence.

Central to the stock’s recent momentum is the completion of the $5.5 billion acquisition of GMS Inc., a major distributor of construction materials for professional contractors. The deal, finalized on September 4, 2025, enhances Home Depot’s Pro services by expanding its supply chain capabilities and cross-selling opportunities. CEO Ted Decker highlighted the integration as a step toward addressing gaps in project-based support for contractors, a key growth area amid softer retail demand.

Analyst sentiment has also bolstered optimism. Zacks Research upgraded long-term earnings-per-share estimates, while Goldman Sachs analyst Kate McShane maintained a “Buy” rating with a $444 price target. Insider activity, including increased stakes by executives, further signals confidence in the company’s strategic direction. Jim Cramer’s endorsement on *Mad Money* emphasized the stock’s 2.23% dividend yield as a compelling feature in a volatile market.

However, macroeconomic headwinds persist. High interest rates and a sluggish housing market have dampened demand for large home improvement projects, with consumers prioritizing smaller, DIY initiatives. Rising costs and inventory management challenges have also sparked concerns about margin pressures. Executives acknowledged these risks, noting potential price adjustments due to proposed tariffs and the need to balance growth investments with shareholder returns.

Despite these challenges, Home Depot’s focus on Pro services and a robust dividend yield positions it to outperform in a competitive sector. Investors will closely watch how the company navigates housing market dynamics and executes its integration strategy, with quarterly earnings and tariff developments serving as key indicators for the stock’s trajectory.