FY2027 EPS Estimates for Home Depot Cut by Erste Group Bank

Key Points

• Erste Group Bank slightly lowered its FY2027 EPS estimate for Home Depot to $14.98 from $15.00, while its FY2028 estimate is $16.16 per share.
• Home Depot’s latest quarterly results came in modestly above expectations, with EPS of $3.43 versus $3.41 expected and revenue of $41.77 billion versus $41.59 billion forecast.
• Wall Street sentiment remains generally positive despite recent target cuts: the stock has a Moderate Buy consensus rating, and the company also announced a quarterly dividend of $2.33 per share.

The Home Depot, Inc. (NYSE:HD - Free Report) - Stock analysts at Erste Group Bank lowered their FY2027 earnings estimates for Home Depot in a report issued on Friday, June 5th. Erste Group Bank analyst S. Lingnau now anticipates that the home improvement retailer will post earnings per share of $14.98 for the year, down from their prior forecast of $15.00. The consensus estimate for Home Depot's current full-year earnings is $15.01 per share. Erste Group Bank also issued estimates for Home Depot's FY2028 earnings at $16.16 EPS.

Home Depot (NYSE:HD - Get Free Report) last issued its quarterly earnings data on Tuesday, May 19th. The home improvement retailer reported $3.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.41 by $0.02. The firm had revenue of $41.77 billion during the quarter, compared to analysts' expectations of $41.59 billion. Home Depot had a net margin of 8.41% and a return on equity of 117.24%. The business's revenue was up 4.8% on a year-over-year basis. During the same period last year, the company earned $3.56 earnings per share. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS.

Other research analysts have also recently issued reports about the stock. Jefferies Financial Group cut their price target on shares of Home Depot from $361.00 to $360.00 and set a "buy" rating on the stock in a report on Thursday, June 4th. Morgan Stanley cut their price target on shares of Home Depot from $420.00 to $400.00 and set an "overweight" rating on the stock in a report on Wednesday, May 20th. Oppenheimer cut 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 report on Monday, May 18th. Royal Bank Of Canada cut their price target on shares of Home Depot from $377.00 to $340.00 and set a "sector perform" rating on the stock in a report on Wednesday, May 20th. Finally, TD Cowen cut their price target on shares of Home Depot from $450.00 to $375.00 and set a "buy" rating on the stock in a report on Wednesday, May 20th. Nineteen research 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. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $371.36.

Home Depot Stock Down 0.5%

Shares of NYSE HD opened at $319.80 on Thursday. The stock has a market capitalization of $318.88 billion, a P/E ratio of 22.71, a P/E/G ratio of 3.71 and a beta of 0.97. The company has a 50-day moving average price of $322.51 and a 200-day moving average price of $347.29. Home Depot has a 1 year low of $289.10 and a 1 year high of $426.75. The company has a debt-to-equity ratio of 3.23, a current ratio of 1.04 and a quick ratio of 0.28.

Home Depot Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 18th. Stockholders of record on Thursday, June 4th will be given a $2.33 dividend. The ex-dividend date of this dividend is Thursday, June 4th. This represents a $9.32 annualized dividend and a dividend yield of 2.9%. Home Depot's payout ratio is 66.19%.

Institutional Trading of Home Depot

Hedge funds and other institutional investors have recently modified their holdings of the business. Advocate Investing Services LLC bought a new stake in shares of Home Depot in the fourth quarter valued at approximately $25,000. Parvin Asset Management LLC increased its holdings in Home Depot by 110.0% during the 3rd quarter. Parvin Asset Management LLC now owns 63 shares of the home improvement retailer's stock worth $26,000 after acquiring an additional 33 shares during the period. Cache Advisors LLC bought a new stake in Home Depot during the 1st quarter worth approximately $27,000. Key Capital Management INC bought a new stake in Home Depot during the 4th quarter worth approximately $28,000. Finally, Merkkuri Wealth Advisors LLC bought a new stake in Home Depot during the 1st quarter worth approximately $28,000. Institutional investors own 70.86% of the company's stock.

Trending Headlines about Home Depot

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

• Positive Sentiment: Analysts and commentators are highlighting Home Depot as a high-quality long-term compounder with a strong competitive moat, which can support buying interest on weakness. Home Depot's Expansion Play: Building Scale or Growth Story?
• Positive Sentiment: Coverage is focused on Home Depot’s Pro expansion strategy, including recent acquisitions such as Mingledorff’s, SRS, and GMS, which could deepen its contractor/logistics platform and expand cross-selling opportunities. Home Depot's Expansion Play: Building Scale or Growth Story?
• Positive Sentiment: Jim Cramer said Home Depot looks like “a good level,” which may encourage dip-buying from retail investors and traders. Jim Cramer on Home Depot: “I Think That This Is a Good Level”
• Positive Sentiment: Home Depot continues to draw “buy” and “outperform” calls from Wall Street, reinforcing confidence in the stock’s longer-term earnings power. Home Depot shares jump 3.2% as investors weigh recent legal win, Pro-expansion updates, and a broader risk-on tape
• Positive Sentiment: Recent reporting also points to a legal win that may reduce liability risk, while broader market rotation into non-tech names is benefiting retailers like Home Depot. Home Depot shares jump 3.2% as investors weigh recent legal win, Pro-expansion updates, and a broader risk-on tape
• Neutral Sentiment: Several articles are more promotional or commentary-driven than fundamentally new, so they may be adding to investor optimism without changing the core business outlook. My Favorite S&P 500 Stock to Buy During the Dip
• Negative Sentiment: Some recent coverage notes that cyclical economic pressures have hurt Home Depot’s results, which remains a headwind for the stock even amid positive long-term commentary. My Favorite S&P 500 Stock to Buy During the Dip

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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