Assessing Home Depot: Insights From 25 Financial Analysts

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In the latest quarter, 25 analysts provided ratings for Home Depot HD, showcasing a mix of bullish and bearish perspectives.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 9 8 6 2 0
Last 30D 0 0 1 0 0
1M Ago 1 1 0 0 0
2M Ago 4 3 2 1 0
3M Ago 4 4 3 1 0

Analysts have recently evaluated Home Depot and provided 12-month price targets. The average target is $388.88, accompanied by a high estimate of $440.00 and a low estimate of $323.00. Marking an increase of 3.92%, the current average surpasses the previous average price target of $374.20.

Decoding Analyst Ratings: A Detailed Look

The standing of Home Depot among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Joseph Feldman Telsey Advisory Group Maintains Market Perform $360.00 $360.00
Scot Ciccarelli Truist Securities Maintains Buy $417.00 $417.00
Greg Melich Evercore ISI Group Lowers Outperform $415.00 $420.00
Steven Forbes Guggenheim Maintains Buy $390.00 -
Daniela Bretthauer HSBC Maintains Reduce $323.00 -
Greg Melich Evercore ISI Group Raises Outperform $425.00 $420.00
Michael Baker DA Davidson Maintains Neutral $370.00 $370.00
Scot Ciccarelli Truist Securities Raises Buy $417.00 $386.00
Joseph Feldman Telsey Advisory Group Raises Market Perform $360.00 $335.00
Seth Basham Wedbush Raises Outperform $410.00 $380.00
Elizabeth Suzuki B of A Securities Raises Buy $425.00 $400.00
Greg Melich Evercore ISI Group Raises Outperform $420.00 $410.00
David Bellinger Mizuho Announces Buy $415.00 -
Max Rakhlenko TD Cowen Raises Outperform $440.00 $415.00
Steven Shemesh RBC Capital Raises Sector Perform $377.00 $299.00
Steven Forbes Guggenheim Raises Buy $390.00 $370.00
Steven Zaccone Citigroup Raises Buy $415.00 $333.00
Scot Ciccarelli Truist Securities Lowers Buy $386.00 $387.00
Seth Basham Wedbush Maintains Outperform $380.00 -
Daniela Bretthauer HSBC Announces Reduce $323.00 -
John Baugh Stifel Raises Hold $366.00 $355.00
Joseph Feldman Telsey Advisory Group Raises Market Perform $335.00 $325.00
Peter Benedict Baird Maintains Outperform $370.00 $370.00
Zachary Fadem Wells Fargo Raises Overweight $400.00 $385.00
Kate McShane Goldman Sachs Raises Buy $393.00 $347.00

Key Insights:

  • Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Home Depot. This offers insight into analysts' perspectives on the current state of the company.
  • Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Home Depot compared to the broader market.
  • Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Home Depot's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

For valuable insights into Home Depot's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Home Depot analyst ratings.

Unveiling the Story Behind Home Depot

Home Depot is the world's largest home improvement specialty retailer, operating more than 2,300 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the United States, Canada, and Mexico. Its stores offer numerous building materials, home improvement products, lawn and garden products, and decor products and provide various services, including home improvement installation services and tool and equipment rentals. The acquisition of distributor Interline Brands in 2015 allowed Home Depot to enter the maintenance, repair, and operations business, which has been expanded through the tie-up with HD Supply (2020). Moreover, the additions of the Company Store brought textile exposure to the lineup, while Redi Carpet added multifamily flooring.

A Deep Dive into Home Depot's Financials

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Decline in Revenue: Over the 3 months period, Home Depot faced challenges, resulting in a decline of approximately -2.92% in revenue growth as of 31 January, 2024. This signifies a reduction in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Net Margin: Home Depot's net margin is impressive, surpassing industry averages. With a net margin of 8.05%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Home Depot's ROE stands out, surpassing industry averages. With an impressive ROE of 226.43%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Home Depot's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.68% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Home Depot's debt-to-equity ratio is notably higher than the industry average. With a ratio of 50.04, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

How Are Analyst Ratings Determined?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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