The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.

The Home Depot, Inc. (NYSE:HD) is included among the Top 10 Blue Chip Stocks with Growing Dividends.

On June 23, Wolfe Research downgraded The Home Depot, Inc. (NYSE:HD) to Peer Perform from Outperform. It did not assign a price target. In a research note, the firm said the stock "remains in limbo" as investors weigh the impact of the housing market lock-in effect and the company's strategic shift toward the large professional contractor segment. According to Wolfe, both factors are creating uncertainty around Home Depot's long-term earnings potential.

The firm noted that a more constructive outlook is beginning to emerge around the mid-term elections, with greater attention being paid to housing affordability. Still, the analyst believes any meaningful legislative action capable of unlocking the housing market would likely not occur before mid-2027.

Wolfe also raised questions about where interest rates may ultimately settle and how much Home Depot may have benefited from years of lower rates that supported earnings growth. The firm added that it continues to prefer shares of Lowe's (LOW).

The Home Depot, Inc. (NYSE:HD) is a home improvement retailer. The company sells a wide range of home improvement products, building materials, lawn and garden items, décor products, and maintenance, repair, and operations (MRO) supplies through its stores and online platforms.

While we acknowledge the potential of HD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: Top 11 Dividend Kings to Buy for Safe Dividend Growth and Billionaire Mario Gabelli's Top 12 Dividend Stocks

Disclosure: None. Follow Insider Monkey on Google News.