DA Davidson Reiterates "Buy" Rating for Home Depot (NYSE:HD)

Key Points

• DA Davidson reiterated its “Buy” rating on Home Depot and set a $377 price target, implying approximately 10% upside from the stock’s $342.79 trading price. The broader analyst consensus is “Moderate Buy,” with an average target of $375.54.
• Home Depot exceeded quarterly expectations, reporting $4.92 in EPS versus $4.73 expected and $47.86 billion in revenue versus $47.24 billion expected. Revenue increased 5.7% year over year, while comparable sales rose 1.7%.
• Despite the earnings beat, analysts remain divided and housing conditions continue to pressure large renovation demand. Institutional investors own 70.86% of the company, while Home Depot maintained full-year guidance amid ongoing cost pressures and CEO medical-leave uncertainty.

Home Depot (NYSE:HD - Get Free Report)'s stock had its "buy" rating restated by investment analysts at DA Davidson in a research report issued to clients and investors on Wednesday,Benzinga reports. They presently have a $377.00 price objective on the home improvement retailer's stock. DA Davidson's target price would indicate a potential upside of 9.98% from the stock's current price.

Several other research analysts have also issued reports on HD. Telsey Advisory Group lowered their price target on shares of Home Depot from $435.00 to $410.00 and set an "outperform" rating for the company in a report on Wednesday, May 20th. KeyCorp reaffirmed a "sector weight" rating on shares of Home Depot in a research note on Wednesday. Piper Sandler decreased their price objective on shares of Home Depot from $422.00 to $421.00 and set an "overweight" rating for the company in a research report on Wednesday, May 20th. Argus reissued a "buy" rating and set a $400.00 target price on shares of Home Depot in a research note on Wednesday. Finally, JPMorgan Chase & Co. dropped their target price on shares of Home Depot from $423.00 to $396.00 and set an "overweight" rating on the stock in a report on Wednesday, May 20th. Eighteen equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $375.54.

Home Depot Trading Up 1.6%

HD traded up $5.30 during midday trading on Wednesday, hitting $342.79. 2,004,717 shares of the company were exchanged, compared to its average volume of 4,383,754. The firm's 50 day moving average price is $340.08 and its 200-day moving average price is $340.97. Home Depot has a 1-year low of $289.10 and a 1-year high of $426.75. The firm has a market capitalization of $341.80 billion, a P/E ratio of 24.30, a P/E/G ratio of 4.08 and a beta of 0.95. The company has a quick ratio of 0.28, a current ratio of 1.04 and a debt-to-equity ratio of 3.23.

Home Depot (NYSE:HD - Get Free Report) last issued its quarterly earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 earnings per share for the quarter, beating the consensus estimate of $4.73 by $0.19. The company had revenue of $47.86 billion during the quarter, compared to analysts' expectations of $47.24 billion. Home Depot had a return on equity of 117.24% and a net margin of 8.41%.The business's quarterly revenue was up 5.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted $4.68 earnings per share. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. As a group, equities analysts forecast that Home Depot will post 14.99 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. Gator Capital Management LLC acquired a new stake in Home Depot during the fourth quarter worth about $3,693,000. King Luther Capital Management Corp increased its position in Home Depot by 0.6% during the 4th quarter. King Luther Capital Management Corp now owns 1,240,478 shares of the home improvement retailer's stock worth $426,848,000 after purchasing an additional 7,180 shares in the last quarter. Thompson Siegel & Walmsley LLC raised its holdings in Home Depot by 320.4% in the fourth quarter. Thompson Siegel & Walmsley LLC now owns 11,292 shares of the home improvement retailer's stock valued at $3,886,000 after buying an additional 8,606 shares during the period. Capital International Inc. CA lifted its position in Home Depot by 4.3% during the fourth quarter. Capital International Inc. CA now owns 150,368 shares of the home improvement retailer's stock valued at $51,742,000 after buying an additional 6,187 shares in the last quarter. Finally, Vise Technologies Inc. lifted its position in Home Depot by 72.1% during the fourth quarter. Vise Technologies Inc. now owns 42,335 shares of the home improvement retailer's stock valued at $14,568,000 after buying an additional 17,731 shares in the last quarter. Institutional investors and hedge funds own 70.86% of the company's stock.

Home Depot News Roundup

Here are the key news stories impacting Home Depot this week:

• Positive Sentiment: Quarterly earnings beat expectations: Home Depot reported adjusted EPS of $4.92 versus the $4.73 consensus and revenue of $47.86 billion versus expectations of roughly $47.24 billion. Revenue rose 5.7% year over year, supported by repair, maintenance, and smaller home-improvement projects. Home Depot beats quarterly sales estimates on steady repair demand
• Positive Sentiment: Comparable sales showed resilience: Total comparable sales increased 1.7%, including a 1.3% gain in the U.S., the company’s strongest comparable-sales performance since 2022. Customers made fewer trips but spent more per visit, indicating continued demand despite high borrowing and housing costs. Home Depot Posts Its Best Comparable Sales Since 2022
• Positive Sentiment: Analyst support strengthened: Argus reaffirmed a Buy rating with a $400 price target, while Guggenheim reiterated Buy and set a $425 target. These targets imply meaningful upside from recent trading levels and reinforce the view that the company is gaining market share while the housing downturn stabilizes.
• Positive Sentiment: Omnichannel investment could support growth: Home Depot expanded its Express Delivery service nationwide, using more than 2,000 U.S. stores as fulfillment hubs to deliver products to Pro and do-it-yourself customers in as little as three hours. The Home Depot Expands Nationwide Express Delivery
• Neutral Sentiment: Analyst views remain mixed: KeyCorp maintained a Sector Weight rating, while Royal Bank of Canada lowered its price target from $343 to $342 and kept a Sector Perform rating. This suggests the earnings beat has not yet convinced all analysts that a broad housing recovery is underway.
• Negative Sentiment: Housing and cost pressures persist: Management described housing conditions as “frozen,” with customers avoiding larger renovations. A $730 million tariff refund was largely offset by rising costs, limiting its benefit to profitability. The company also maintained full-year guidance, whose EPS and revenue ranges are slightly below consensus midpoint expectations. CEO Ted Decker’s medical leave adds another uncertainty for investors.

About Home Depot

The Home Depot, Inc NYSE: HD is a leading home improvement retailer that operates large-format stores and an integrated online platform offering a broad range of products and services for do-it-yourself consumers, professional contractors and businesses. The company was founded in 1978 by Bernard Marcus and Arthur Blank and is headquartered in Atlanta, Georgia. Since opening its first stores at the end of the 1970s, Home Depot has grown into a multinational retailer known for its orange-branded stores and wide assortment of home improvement merchandise.

Home Depot's core business includes the sale of building materials, lumber, tools, hardware, appliances, paint, plumbing and electrical supplies, lawn and garden products, and home décor.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source