Throughout the last three months, 13 analysts have evaluated Home Depot HD, offering a diverse set of opinions from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 5 | 2 | 6 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 2 | 2 | 5 | 0 | 0 |
| 2M Ago | 1 | 0 | 1 | 0 | 0 |
| 3M Ago | 1 | 0 | 0 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $385.31, a high estimate of $430.00, and a low estimate of $330.00. Surpassing the previous average price target of $383.33, the current average has increased by 0.52%.
Deciphering Analyst Ratings: An In-Depth Analysis
An in-depth analysis of recent analyst actions unveils how financial experts perceive Home Depot. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Michael Baker | DA Davidson | Raises | Buy | $430.00 | $395.00 |
| Steven Shemesh | RBC Capital | Lowers | Sector Perform | $363.00 | $377.00 |
| Laura Champine | Loop Capital | Lowers | Hold | $330.00 | $360.00 |
| Scot Ciccarelli | Truist Securities | Lowers | Buy | $395.00 | $396.00 |
| Michael Lasser | UBS | Raises | Buy | $425.00 | $400.00 |
| Greg Melich | Evercore ISI Group | Lowers | Outperform | $400.00 | $415.00 |
| W. Andrew Carter | Stifel | Lowers | Hold | $375.00 | $380.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Market Perform | $360.00 | $360.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Market Perform | $360.00 | $360.00 |
| Christopher Horvers | JP Morgan | Raises | Overweight | $400.00 | $377.00 |
| Scot Ciccarelli | Truist Securities | Lowers | Buy | $396.00 | $406.00 |
| W. Andrew Carter | Stifel | Raises | Hold | $380.00 | $374.00 |
| Michael Baker | DA Davidson | Announces | Buy | $395.00 | - |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Home Depot. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Home Depot compared to the broader market.
- Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Home Depot's stock. This comparison reveals trends in analysts' expectations over time.
Capture valuable insights into Home Depot's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
Stay up to date on Home Depot analyst ratings.
All You Need to Know About Home Depot
Home Depot is the world's largest home improvement specialty retailer, operating more than 2,300 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the US, Canada, and Mexico. Its stores offer numerous building materials, home improvement products, lawn and garden products, and decor products and provide various services, including home improvement installation services and tool and equipment rentals. The acquisition of Interline Brands in 2015 allowed Home Depot to enter the MRO business, which has been expanded through the tie-up with HD Supply (2020). The additions of the Company Store brought textiles to the lineup, and Redi Carpet added multifamily flooring, while the recent tie-up with SRS will help grow professional demand.
Home Depot: A Financial Overview
Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.
Positive Revenue Trend: Examining Home Depot's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 0.6% as of 31 July, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.
Net Margin: Home Depot's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 10.56% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 146.19%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Home Depot's ROA stands out, surpassing industry averages. With an impressive ROA of 5.18%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: Home Depot's debt-to-equity ratio stands notably higher than the industry average, reaching 14.62. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
The Significance of Analyst Ratings Explained
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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