Home Depot FY2028 EPS Estimate Reduced by Erste Group Bank

Key Points

• Erste Group Bank lowered its FY2028 EPS estimate for Home Depot to $16.00 from $16.02, still above the broader consensus estimate of $15.00.
• Home Depot’s latest quarterly results exceeded expectations, with EPS of $4.92 versus $4.73 expected and revenue of $47.86 billion, up 5.7% year over year.
• Analyst sentiment remains favorable, with an average “Moderate Buy” rating and a $375.18 consensus price target; the company also pays a quarterly dividend of $2.33, yielding about 3.1% annually.

The Home Depot, Inc. (NYSE:HD - Free Report) - Equities researchers at Erste Group Bank cut their FY2028 EPS estimates for shares of Home Depot in a research note issued to investors on Friday, September 18th. Erste Group Bank analyst S. Lingnau now forecasts that the home improvement retailer will earn $16.00 per share for the year, down from their previous forecast of $16.02. The consensus estimate for Home Depot's current full-year earnings is $15.00 per share.

Other equities research analysts also recently issued research reports about the stock. KeyCorp reissued a "sector weight" rating on shares of Home Depot in a research report on Wednesday, August 19th. Jefferies Financial Group reiterated a "buy" rating and set a $398.00 target price on shares of Home Depot in a research report on Tuesday, August 18th. Argus reissued a "buy" rating and set a $400.00 price target on shares of Home Depot in a report on Wednesday, August 19th. Gordon Haskett upped their price target on Home Depot from $320.00 to $330.00 in a research report on Friday, June 12th. Finally, DA Davidson reaffirmed a "buy" rating and set a $377.00 price objective on shares of Home Depot in a research report on Wednesday, August 19th. Eighteen equities research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Home Depot has an average rating of "Moderate Buy" and an average target price of $375.18.

Home Depot Stock Up 0.0%

HD opened at $300.00 on Monday. The company has a current ratio of 1.08, a quick ratio of 0.31 and a debt-to-equity ratio of 2.64. Home Depot has a 1-year low of $289.10 and a 1-year high of $418.58. The company has a market capitalization of $299.30 billion, a PE ratio of 20.99, a PEG ratio of 3.30 and a beta of 0.95. The firm's 50 day simple moving average is $331.30 and its two-hundred day simple moving average is $331.03.

Home Depot (NYSE:HD - Get Free Report) last posted its quarterly earnings data on Tuesday, August 18th. The home improvement retailer reported $4.92 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.73 by $0.19. Home Depot had a net margin of 8.41% and a return on equity of 106.42%. The company had revenue of $47.86 billion for the quarter, compared to the consensus estimate of $47.24 billion. During the same quarter last year, the firm posted $4.68 earnings per share. The firm's revenue was up 5.7% compared to the same quarter last year. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. BlackRock Inc. bought a new position in Home Depot during the 2nd quarter valued at about $28,771,247,000. Geode Capital Management LLC boosted its position in shares of Home Depot by 1.5% during the fourth quarter. Geode Capital Management LLC now owns 23,756,142 shares of the home improvement retailer's stock valued at $8,151,344,000 after buying an additional 343,153 shares during the period. Bank of America Corp DE bought a new position in shares of Home Depot during the second quarter valued at approximately $5,780,468,000. Norges Bank purchased a new stake in shares of Home Depot in the fourth quarter worth approximately $4,850,329,000. Finally, Capital World Investors lifted its stake in shares of Home Depot by 1.6% during the 4th quarter. Capital World Investors now owns 13,147,117 shares of the home improvement retailer's stock worth $4,524,166,000 after acquiring an additional 201,694 shares during the last quarter. 70.86% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, EVP Teresa Roseborough sold 2,455 shares of the stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $328.77, for a total transaction of $807,130.35. Following the completion of the sale, the executive vice president owned 14,061 shares in the company, valued at approximately $4,622,834.97. This trade represents a 14.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CAO Kimberly Scardino sold 675 shares of the stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $305.95, for a total transaction of $206,516.25. Following the sale, the chief accounting officer directly owned 8,189 shares of the company's stock, valued at approximately $2,505,424.55. This trade represents a 7.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 9,829 shares of company stock worth $3,339,314. 0.08% of the stock is currently owned by insiders.

Home Depot Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 17th. Stockholders of record on Thursday, September 3rd were given a $2.33 dividend. This represents a $9.32 annualized dividend and a dividend yield of 3.1%. The ex-dividend date was Thursday, September 3rd. Home Depot's payout ratio is presently 65.22%.

About Home Depot

The Home Depot, Inc is a home improvement retailer that sells building materials, appliances, decor, hardware, tools, paint, lawn and garden products, and related merchandise. The company serves do-it-yourself customers, professional contractors, homebuilders, and other commercial customers through its retail stores and digital platforms.

Home Depot also provides services such as equipment and tool rental, delivery, installation, and project support. Its professional-focused offerings include job-lot quantities, specialized products, credit services, and account support designed for contractors and other trade customers.

Founded in 1978 by Bernie Marcus, Arthur Blank, Ken Langone, and Pat Farrah, the company is headquartered in Atlanta, Georgia.

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