Home Depot (NYSE:HD) Coverage Initiated at Bank of America

Key Points

• Bank of America initiated coverage on Home Depot with a buy rating and a $374 price target, implying roughly 19.66% upside from the current share price.
• Home Depot beat quarterly EPS estimates ($2.72 vs. $2.52), reported revenue slightly above expectations, and set FY‑2026 guidance of 14.230–14.799 EPS; analysts' consensus projects about 15.03 EPS and a target near $412.
• Analyst sentiment is largely positive (20 Buy, 12 Hold, 1 Sell) but near‑term risks—housing affordability and high rates, recent oil/geo‑risk driven market weakness, and some insider selling—temper the outlook as the stock trades near its 12‑month low (~$312) versus a high of $426.75.

Stock analysts at Bank of America started coverage on shares of Home Depot (NYSE:HD - Get Free Report) in a report issued on Tuesday. The firm set a "buy" rating and a $374.00 price target on the home improvement retailer's stock. Bank of America's price target points to a potential upside of 19.66% from the stock's current price.

A number of other equities research analysts also recently commented on the company. Sanford C. Bernstein increased their price objective on Home Depot from $381.00 to $390.00 and gave the company a "market perform" rating in a research report on Wednesday, February 25th. Telsey Advisory Group reissued an "outperform" rating and set a $435.00 target price on shares of Home Depot in a research report on Wednesday, March 25th. BNP Paribas Exane lowered their price target on Home Depot from $391.00 to $348.00 and set a "neutral" rating on the stock in a research report on Tuesday, March 24th. Wolfe Research increased their target price on shares of Home Depot from $413.00 to $414.00 and gave the company an "outperform" rating in a research note on Wednesday, February 25th. Finally, Guggenheim increased their target price 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. Twenty investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Home Depot presently has an average rating of "Moderate Buy" and a consensus target price of $412.24.

Home Depot Stock Performance

Shares of NYSE HD opened at $312.55 on Tuesday. The company has a current ratio of 1.06, a quick ratio of 0.26 and a debt-to-equity ratio of 3.62. The stock has a 50 day simple moving average of $343.27 and a 200-day simple moving average of $359.02. The company has a market cap of $311.31 billion, a PE ratio of 21.96, a P/E/G ratio of 3.54 and a beta of 1.00. Home Depot has a 12-month low of $312.26 and a 12-month high of $426.75.

Home Depot (NYSE:HD - Get Free Report) last issued its quarterly earnings data 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 during the quarter, compared to the consensus estimate of $38.01 billion. Home Depot had a return on equity of 134.32% and a net margin of 8.60%.The business's revenue was down 3.8% on a year-over-year basis. During the same period in the previous year, the firm posted $3.13 earnings per share. Home Depot has set its FY 2026 guidance at 14.230-14.799 EPS. On average, equities research analysts forecast that Home Depot will post 15.03 EPS for the current year.

Insider Buying and Selling

In other news, CFO Richard V. Mcphail sold 2,550 shares of the firm'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 completion of the sale, the chief financial officer owned 44,566 shares of the company's stock, valued at approximately $16,439,951.74. This trade represents a 5.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. 0.08% of the stock is currently owned by corporate insiders.

Institutional Trading of Home Depot

Hedge funds and other institutional investors have recently modified their holdings of the stock. Advocate Investing Services LLC acquired a new stake in Home Depot during the 4th quarter worth $25,000. Parvin Asset Management LLC grew 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 acquired a new stake in Home Depot during the 1st quarter worth $27,000. Key Capital Management INC bought a new position in shares of Home Depot during the fourth quarter worth $28,000. Finally, Merkkuri Wealth Advisors LLC bought a new position in shares of Home Depot during the first quarter worth $28,000. Institutional investors and hedge funds 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: Recent analyst coverage and price targets remain constructive (median target ~$422), signaling continued Street confidence that Home Depot’s long‑term earnings power remains intact. Quiver Quantitative — HD coverage & targets
• Positive Sentiment: Home Depot recently topped EPS estimates (reported $2.72 vs. ~$2.52 consensus) and provided FY‑2026 guidance, which supports headline valuation and the buy‑and‑hold thesis for many investors. Zacks — Investor attention on HD
• Neutral Sentiment: Brokerage consensus remains around a “moderate buy,” indicating mixed near‑term conviction despite longer‑term support from analysts. American Banking News — Broker ratings
• Neutral Sentiment: Investors are positioning ahead of upcoming catalysts (next scheduled quarter/updates later in May), which can amplify intraday moves as portfolios are rebalanced. Yahoo Finance — Market reaction and context
• Negative Sentiment: Macro shock: renewed Middle East tensions lifted oil and pushed a risk‑off tone, hitting cyclical consumer names like Home Depot that are sensitive to discretionary spending. Quiver — Middle East energy shock analysis
• Negative Sentiment: Demand and margin pressure: housing affordability and high rates are crimping big‑ticket home improvement spend; analysts and market pieces flag a still‑soft renovation backdrop. Barron's — Consumer/sector weakness
• Negative Sentiment: Operational/reputational risk from partner fallout: the abrupt U.S. Chapter 7 of Wren Kitchens left customers with stalled installs and refunds, spotlighting third‑party partner exposure. Yahoo Finance — Wren Kitchens bankruptcy impact
• Negative Sentiment: Insider and institutional flows show recent selling and portfolio reductions by some large holders, which can exacerbate price moves in a risk‑off session. Quiver — Insider & institutional activity
• Negative Sentiment: Policy/labor risk: commentary about potential minimum wage and labor‑cost pressures has investors debating margin sensitivity for large retailers. TipRanks — Minimum wage/labor risk

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.

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