8 analysts have expressed a variety of opinions on Home Depot HD over the past quarter, offering a diverse set of opinions 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 | 3 | 4 | 1 | 0 | 0 |
| Last 30D | 1 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 1 | 0 | 0 | 0 |
| 2M Ago | 1 | 2 | 1 | 0 | 0 |
| 3M Ago | 1 | 0 | 0 | 0 | 0 |
The 12-month price targets, analyzed by analysts, offer insights with an average target of $380.38, a high estimate of $400.00, and a low estimate of $355.00. Observing a 12.71% increase, the current average has risen from the previous average price target of $337.50.
Breaking Down Analyst Ratings: A Detailed Examination
A comprehensive examination of how financial experts perceive Home Depot is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Zachary Fadem | Wells Fargo | Raises | Overweight | $400.00 | $385.00 |
| Kate McShane | Goldman Sachs | Raises | Buy | $393.00 | $347.00 |
| Peter Keith | Piper Sandler | Raises | Overweight | $400.00 | $311.00 |
| Seth Basham | Wedbush | Raises | Outperform | $380.00 | $330.00 |
| Seth Sigman | Barclays | Raises | Overweight | $372.00 | $325.00 |
| Scot Ciccarelli | Truist Securities | Raises | Buy | $387.00 | $356.00 |
| John Baugh | Stifel | Raises | Hold | $355.00 | $306.00 |
| Scot Ciccarelli | Truist Securities | Raises | Buy | $356.00 | $340.00 |
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: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey 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.
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.
Delving into Home Depot's Background
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 United States, 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 distributor Interline Brands in 2015 allowed Home Depot to enter the maintenance, repair, and operations business, which has been expanded through the tie-up with HD Supply (2020). Moreover, the additions of the Company Store brought textile exposure to the lineup, while Redi Carpet added multifamily flooring.
Breaking Down Home Depot's Financial Performance
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Negative Revenue Trend: Examining Home Depot's financials over 3 months reveals challenges. As of 31 October, 2023, the company experienced a decline of approximately -2.99% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Net Margin: Home Depot's net margin is impressive, surpassing industry averages. With a net margin of 10.1%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Home Depot's ROE stands out, surpassing industry averages. With an impressive ROE of 275.59%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Home Depot's ROA excels beyond industry benchmarks, reaching 5.01%. This signifies efficient management 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 34.44, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
The Significance of Analyst Ratings Explained
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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