Erste Group Bank Lifts Earnings Estimates for Home Depot

Key Points

• Erste Group Bank slightly raised its FY2028 EPS estimate for Home Depot to $16.30 from $16.26, indicating modestly improved long-term earnings expectations.
• Home Depot’s latest quarterly results beat Wall Street forecasts, with EPS of $2.72 versus $2.52 expected and revenue of $38.20 billion versus $38.01 billion estimated.
• Analyst sentiment remains generally positive overall, with the stock holding a Moderate Buy consensus and an average target price of $410.86, even as some firms have recently cut price targets.

The Home Depot, Inc. (NYSE:HD - Free Report) - Equities research analysts at Erste Group Bank raised their FY2028 EPS estimates for shares of Home Depot in a note issued to investors on Tuesday, May 5th. Erste Group Bank analyst S. Lingnau now forecasts that the home improvement retailer will post earnings of $16.30 per share for the year, up from their previous estimate of $16.26. The consensus estimate for Home Depot's current full-year earnings is $15.03 per share.

Home Depot (NYSE:HD - Get Free Report) last posted its quarterly earnings results on Tuesday, February 24th. The home improvement retailer reported $2.72 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.52 by $0.20. The business had revenue of $38.20 billion for the quarter, compared to analyst estimates of $38.01 billion. Home Depot had a net margin of 8.60% and a return on equity of 134.32%. The firm's revenue for the quarter was down 3.8% on a year-over-year basis. During the same quarter last year, the business posted $3.13 EPS. Home Depot has set its FY 2026 guidance at 14.230-14.799 EPS.

HD has been the topic of several other research reports. TD Cowen reiterated a "buy" rating on shares of Home Depot in a research note on Thursday, March 12th. Robert W. Baird raised their price objective on Home Depot from $400.00 to $430.00 and gave the company an "outperform" rating in a research note on Tuesday, February 17th. Jefferies Financial Group lifted their target price on Home Depot from $424.00 to $454.00 and gave the company a "buy" rating in a research report on Tuesday, February 24th. KeyCorp reissued a "sector weight" rating on shares of Home Depot in a research note on Wednesday, February 25th. Finally, Wolfe Research increased their target price on shares of Home Depot from $413.00 to $414.00 and gave the stock an "outperform" rating in a report on Wednesday, February 25th. Twenty investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $410.86.

Home Depot Stock Down 0.0%

NYSE HD opened at $317.43 on Monday. The business has a fifty day moving average price of $339.65 and a two-hundred day moving average price of $357.57. The stock has a market capitalization of $316.17 billion, a PE ratio of 22.31, a PEG ratio of 3.66 and a beta of 1.00. Home Depot has a fifty-two week low of $310.40 and a fifty-two week high of $426.75. The company has a debt-to-equity ratio of 3.62, a current ratio of 1.06 and a quick ratio of 0.26.

Institutional Trading of Home Depot

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Norges Bank acquired a new position in Home Depot in the 4th quarter valued at approximately $4,850,329,000. Wellington Management Group LLP raised its stake in shares of Home Depot by 60.8% during the third quarter. Wellington Management Group LLP now owns 10,143,089 shares of the home improvement retailer's stock valued at $4,109,878,000 after acquiring an additional 3,836,051 shares during the last quarter. Cardano Risk Management B.V. lifted its holdings in shares of Home Depot by 901.5% during the fourth quarter. Cardano Risk Management B.V. now owns 3,290,540 shares of the home improvement retailer's stock worth $1,132,275,000 after purchasing an additional 2,961,979 shares during the period. Diamant Asset Management Inc. grew its stake in shares of Home Depot by 33,026.3% in the first quarter. Diamant Asset Management Inc. now owns 2,342,026 shares of the home improvement retailer's stock worth $770,269,000 after purchasing an additional 2,334,956 shares during the last quarter. Finally, J. Stern & Co. LLP grew its stake in shares of Home Depot by 14,869.3% in the fourth quarter. J. Stern & Co. LLP now owns 2,232,521 shares of the home improvement retailer's stock worth $768,210,000 after purchasing an additional 2,217,607 shares during the last quarter. 70.86% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other Home Depot news, CFO Richard V. Mcphail sold 2,550 shares of the company's stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $368.89, for a total value of $940,669.50. Following the completion of the transaction, the chief financial officer owned 44,566 shares of the company's stock, valued at $16,439,951.74. This represents a 5.41% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.08% of the stock is owned by corporate insiders.

Home Depot Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 26th. Investors of record on Thursday, March 12th were given a dividend of $2.33 per share. The ex-dividend date was Thursday, March 12th. This represents a $9.32 dividend on an annualized basis and a yield of 2.9%. This is an increase from Home Depot's previous quarterly dividend of $2.30. Home Depot's dividend payout ratio is presently 65.50%.

Key Stories Impacting Home Depot

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

• Positive Sentiment: Erste Group Bank slightly raised its FY2028 EPS estimate for Home Depot to $16.30 from $16.26, suggesting longer-term earnings expectations are still edging higher. Home Depot analyst estimate update
• Neutral Sentiment: Home Depot was mentioned in an analyst-trending roundup, but the item does not provide a meaningful new catalyst by itself. Home Depot trending with analysts
• Neutral Sentiment: A story about a burrito business operating in a Home Depot parking lot is colorful but not directly material to Home Depot’s fundamentals or earnings outlook. Burrito spot in Home Depot parking lot
• Negative Sentiment: Gordon Haskett cut its price target on Home Depot to $330 from $395, which may have reinforced investor concern that the stock’s near-term upside is more limited than previously expected. Gordon Haskett price target cut

Home Depot Company Profile

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.