Home Depot Touts Biggest Comps Growth Since 2023, Analysts Remain Bullish

Shares of Home Depot Inc HD were climbing in early trading on Tuesday, after the company reported second-quarter results.

Here are some key analyst takeaways.

• DA Davidson analyst Michael Baker reaffirmed a Buy rating and price target of $450.
• Goldman Sachs analyst Kate McShane maintained a Buy rating and price target of $400.
• Tesley Advisory Group analyst Joseph Feldman reiterated an Outperform rating and price target of $455.

Check out other analyst stock ratings.

DA Davidson: Home Depot's comps grew by 1.0%, just below consensus of 1.1% but representing a strong acceleration versus the previous quarter's 0.3% decline, Baker said in a note. Comps were hurt by currency exchange rates, he added.

The comps growth was the first increase since the first quarter of 2023. It’s also the most significant increase since the fourth quarter of 2022, the analyst stated. Comps improved through the quarter, with July tracking at 3.0%, "the best monthly comp of the year," he further wrote.

Goldman Sachs: Home Depot reported adjusted earnings of $4.68 per share, missing consensus of $4.71 per share, McShane said. Net sales grew 4.9% year-on-year to $45.3 billion, versus consensus of $45.4 billion, he added.

During Q1, Home Depot experienced:

• An increase in average ticket (+1.4% y/y) accelerating from flat in 1Q
• Transactions decreased (-0.4% y/y) decelerating from +2.1% in 1Q
• Management reiterated their full-year guidance, including sales growth of approximately 2.8% and a decline in adjusted earnings of 2.0%, versus consensus of 3.0% and 0.3% growth.

Telsey Advisory Group: Home Depot missed comps estimates due to "pressure on spending on larger projects," with higher interest rates continuing to dampen home turnover and renovation activity, Fieldman said.

U.S. comp rose 1.4% and trends improved through the second quarter, with 0.3% in May, 0.5% in June, and 3.3% in July, he added.

The improvement was driven by accelerating momentum in core categories, "with customers engaging in smaller projects," the analyst wrote. The 2025 guidance translates to earnings of around $14.94 per share. It’s slightly short of the consensus of $14.99 per share, he further stated.

HD Price Action: Shares of Home Depot had risen by 3.14% to $407.09 at the time of publication on Tuesday.

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