Expert Outlook: Home Depot Through The Eyes Of 14 Analysts
During the last three months, 14 analysts shared their evaluations of Home Depot (NYSE:HD), revealing diverse outlooks from bullish to bearish.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 6 | 4 | 3 | 1 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 1 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 5 | 4 | 2 | 1 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $390.79, with a high estimate of $420.00 and a low estimate of $318.00. Experiencing a 2.06% decline, the current average is now lower than the previous average price target of $399.00.
Decoding Analyst Ratings: A Detailed Look
In examining recent analyst actions, we gain insights into 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 |
|---|---|---|---|---|---|
| W. Andrew Carter | Stifel | Raises | Hold | $380.00 | $374.00 |
| Michael Baker | DA Davidson | Announces | Buy | $395.00 | - |
| Daniela Bretthauer | HSBC | Lowers | Reduce | $318.00 | $323.00 |
| Max Rakhlenko | TD Cowen | Lowers | Buy | $420.00 | $440.00 |
| Michael Lasser | UBS | Lowers | Buy | $400.00 | $411.00 |
| Scot Ciccarelli | Truist Securities | Lowers | Buy | $406.00 | $417.00 |
| Greg Melich | Evercore ISI Group | Lowers | Outperform | $390.00 | $420.00 |
| Greg Melich | Evercore ISI Group | Raises | Outperform | $420.00 | $415.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Market Perform | $360.00 | $360.00 |
| Seth Basham | Wedbush | Maintains | Outperform | $410.00 | $410.00 |
| Zachary Fadem | Wells Fargo | Lowers | Overweight | $400.00 | $425.00 |
| Steven Zaccone | Citigroup | Lowers | Buy | $395.00 | $415.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Market Perform | $360.00 | $360.00 |
| Scot Ciccarelli | Truist Securities | Maintains | Buy | $417.00 | $417.00 |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Home Depot. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Home Depot compared to the broader market.
- Price Targets: Delving into movements, analysts provide estimates for the future value of Home Depot's stock. This analysis reveals shifts in analysts' expectations over time.
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Home Depot's market standing. Stay informed and make data-driven 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 helps grow professional demand.
Understanding the Numbers: Home Depot's Finances
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.
Negative Revenue Trend: Examining Home Depot's financials over 3 months reveals challenges. As of 30 April, 2024, the company experienced a decline of approximately -2.25% in revenue growth, reflecting a decrease 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 9.89% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Home Depot's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 251.4%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Home Depot's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 4.62%, the company showcases efficient use of assets and strong financial health.
Debt Management: Home Depot's debt-to-equity ratio is notably higher than the industry average. With a ratio of 28.03, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
Analyst Ratings: What Are They?
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.