Erste Group Bank Lowers Earnings Estimates for Home Depot

Key Points

• Erste Group Bank trimmed its FY2028 EPS estimate for Home Depot slightly to $16.28 from $16.30, though that remains above the broader consensus estimate of $15.03 per share.
• Home Depot recently beat quarterly expectations, reporting EPS of $3.43 on revenue of $41.77 billion, and it reaffirmed its full-year guidance, which helped ease investor concerns.
• Analyst sentiment is mixed but still mostly positive: several firms cut price targets, yet the stock’s overall rating remains “Moderate Buy” with an average target price of $401.34.

The Home Depot, Inc. (NYSE:HD - Free Report) - Equities research analysts at Erste Group Bank reduced their FY2028 EPS estimates for Home Depot in a research note issued to investors on Tuesday, May 12th. Erste Group Bank analyst S. Lingnau now forecasts that the home improvement retailer will post earnings of $16.28 per share for the year, down from their prior estimate of $16.30. 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, May 19th. The home improvement retailer reported $3.43 earnings per share for the quarter, topping analysts' consensus estimates of $3.42 by $0.01. The firm had revenue of $41.77 billion for the quarter, compared to analyst estimates of $41.59 billion. Home Depot had a net margin of 8.60% and a return on equity of 134.32%. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS.

A number of other equities research analysts also recently issued reports on the stock. Wells Fargo & Company reduced their price target on shares of Home Depot from $420.00 to $375.00 and set an "overweight" rating on the stock in a research note on Thursday. Stifel Nicolaus reduced their price target on shares of Home Depot from $375.00 to $320.00 and set a "hold" rating on the stock in a research note on Monday. Gordon Haskett reduced their price target on shares of Home Depot from $395.00 to $330.00 in a research note on Friday, May 8th. Guggenheim boosted their price target on shares of Home Depot from $400.00 to $425.00 and gave the company a "buy" rating in a research note on Wednesday, February 25th. Finally, Oppenheimer reduced their price target on shares of Home Depot from $405.00 to $310.00 and set a "market perform" rating on the stock in a research note on Monday. Twenty research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $401.34.

Home Depot Stock Performance

NYSE:HD opened at $299.98 on Tuesday. The company has a debt-to-equity ratio of 3.62, a current ratio of 1.06 and a quick ratio of 0.26. The firm has a market capitalization of $298.79 billion, a price-to-earnings ratio of 21.08, a PEG ratio of 3.43 and a beta of 1.00. The company's 50-day moving average is $330.53 and its two-hundred day moving average is $353.57. Home Depot has a 1-year low of $296.88 and a 1-year high of $426.75.

Institutional Investors Weigh In On Home Depot

Large investors have recently modified their holdings of the company. Silphium Asset Management Ltd boosted its stake in Home Depot by 77.2% during the 3rd quarter. Silphium Asset Management Ltd now owns 13,544 shares of the home improvement retailer's stock worth $5,488,000 after purchasing an additional 5,900 shares during the period. Truist Financial Corp boosted its stake in Home Depot by 0.3% during the 3rd quarter. Truist Financial Corp now owns 1,095,113 shares of the home improvement retailer's stock worth $443,729,000 after purchasing an additional 3,608 shares during the period. Atlantic Union Bankshares Corp boosted its stake in Home Depot by 59.9% during the 3rd quarter. Atlantic Union Bankshares Corp now owns 107,438 shares of the home improvement retailer's stock worth $43,533,000 after purchasing an additional 40,232 shares during the period. Carnegie Investment Counsel boosted its stake in Home Depot by 24.8% during the 4th quarter. Carnegie Investment Counsel now owns 108,306 shares of the home improvement retailer's stock worth $37,268,000 after purchasing an additional 21,545 shares during the period. Finally, Savvy Advisors Inc. boosted its stake in Home Depot by 36.0% during the 4th quarter. Savvy Advisors Inc. now owns 19,478 shares of the home improvement retailer's stock worth $6,703,000 after purchasing an additional 5,152 shares during the period. 70.86% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, CFO Richard V. Mcphail sold 2,550 shares of the company's stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $368.89, for a total transaction of $940,669.50. Following the sale, the chief financial officer directly 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 filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.08% of the stock is currently owned by insiders.

Home Depot Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, March 26th. Investors of record on Thursday, March 12th were paid a dividend of $2.33 per share. This represents a $9.32 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend was Thursday, March 12th. This is an increase from Home Depot's previous quarterly dividend of $2.30. Home Depot's payout ratio is currently 65.50%.

More Home Depot News

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

• Positive Sentiment: Home Depot beat first-quarter sales and earnings expectations, showing demand held up better than expected. Home Depot beats quarterly sales estimates on steady demand
• Positive Sentiment: The company reaffirmed its full-year outlook, easing fears that management would cut guidance ahead of the results. Home Depot's stock rises as the full-year outlook was kept intact, a relief for worried investors
• Positive Sentiment: Management pointed to resilient professional demand and smaller DIY repair projects, suggesting core customers are still spending despite inflation and weak consumer confidence. Home Depot says core shopper is resilient in the face of higher gas prices, sales rise 5%
• Neutral Sentiment: Sales growth was modest, and comparable sales in the U.S. were only slightly positive, indicating the recovery in home improvement spending is still uneven. The Home Depot Announces First Quarter Fiscal 2026 Results; Reaffirms Fiscal 2026 Guidance
• Negative Sentiment: Several pre-earnings reports highlighted weak housing demand, high borrowing costs, and cautious consumer spending, which remain headwinds for future growth. Home Depot Posts Lower Profit Amid Slow Home Improvement Activity
• Negative Sentiment: Oppenheimer cut its price target to $310 from $405, reflecting more cautious expectations for the stock. Home Depot NYSE: HD Price Target Cut to $310.00 by Analysts at Oppenheimer

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.

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