Analysts See Positive Future Ahead For Home Depot Even Amid First Quarter EPS Miss

Home Depot HD released first quarter results Tuesday to cautious, but overall positive, responses from analysts.

Analysts made note that a resurgence in the housing market and strong May sales has Home Depot well positioned after a worse-than-expected first quarter.

Home Depot missed analysts estimates on EPS, however, this can be explained by poor housing market conditions. 

Jefferies has a Buy rating and $90 price target on the stock. Analyst Daniel Binder of Jefferies believes that Home Depot has a well-run business and has "created value for shareholders over time," but because of housing metrics, Home Depot has not been able to necessarily capitalize on their solid business model.

However with a resurgence in the housing market, growth for Home Depot could be driven up.

Raymond James has an Outperform rating and a $85.50 price target on the stock. Analyst Budd Bugatch sees that "robust" May sales and slow resurgences of housing market should lead Home Depot to higher share prices in the short-term. Home Depot's strong cash flow should provide increased dividends for the future.

Argus has a Buy rating and a $95 price target on the stock. Analyst Christopher Graja sees that with increasing return on capital, rising home prices and a well-executed business plan, Home Depot has room to increase profitability and earnings.

Shares of Home Depot traded slightly down 0.05 percent to $77.92 Wednesday when news of earnings and analysts responses broke.

Shares are up 1.14 percent at $78.97 in Thursday's session.