Bank of America lifts Home Depot to Buy on Pro customer strength

When a contractor is waiting on drywall, a late delivery or a missing item can stall an entire job. That is why Bank of America’s move on May 5 to reinstate coverage of Home Depot at Buy matters on the floor: it points straight to the Pro customer as the retailer’s edge in a still-subdued housing market.

The call did not change the day-to-day work in stores, but it confirmed the operating reality many associates already see. Bank of America rated Lowe’s Neutral and said Home Depot’s heavier exposure to professional contractors sets it apart when do-it-yourself demand is softer. For associates, that means the basics around stock accuracy, order pickup, delivery reliability and fast problem-solving are not side tasks. They are part of how Home Depot keeps a job moving for customers who are working against a deadline.

Home Depot has been explicit about who counts as Pro. In its fiscal 2025 annual report, the company said that group includes professional renovators and remodelers, general contractors, homebuilders, maintenance professionals, handymen, property managers, building service contractors and specialty tradespeople such as electricians, landscapers, insulation installers, plumbers, painters, pool contractors, roofers, and wallboard and ceiling installers. That mix explains why store teams are pushed to know more than aisle locations. They need to understand volume buying, project sequencing and which products cannot slip.

The numbers show why management keeps leaning into that customer. Home Depot reported fiscal 2025 net sales of $164.7 billion, up 3.2% from fiscal 2024, even though comparable sales rose only 0.3% companywide and 0.5% in the U.S. The company’s proxy statement says it aims to grow market share by providing a best-in-class interconnected experience and by growing sales to professional customers through a unique ecosystem of capabilities. In practice, that means more pressure on fulfillment, more attention to digital ordering, and a stronger sales bench for contractor accounts.

Executives have also tied the Pro strategy to service quality. At the company’s December 9, 2025 investor and analyst conference, leaders said customer satisfaction for Pro deliveries was at all-time highs. Home Depot has also been building out the specialty side of the business. On June 30, 2025, it said SRS Distribution would acquire GMS Inc. to expand distribution offerings and capabilities for Pro customers, and it completed that acquisition on September 4, 2025 for an enterprise value of about $5.5 billion. GMS brings drywall, ceilings, steel framing and other products tied to remodeling and construction projects, widening the company’s reach beyond the orange-box store.

Bank of America’s call lands just ahead of Home Depot’s first-quarter 2026 earnings conference call on May 19, 2026. For store leaders and associates, the broader message is clear: Wall Street is still rewarding Home Depot for doing the hardest part of retail well, serving contractors and tradespeople who cannot afford delays, shortcuts or weak handoffs.