Home Depot Hammers Down Strong Q3 Sales, Builds For Long-Term Success

Home Depot Inc HD released its third-quarter earnings report Tuesday, posting revenue and EPS beats, aided by recent bouts of extreme weather. Analysts are still bullish on the Atlanta, Georgia-based company.

Home Depot Analysts: The following analysts published notes on Tuesday:

• Goldman Sachs analyst Kate McShane reiterated a Buy rating for Home Depot, raising its price target from $384 to $410.
• J.P. Morgan analyst Christopher Horvers reiterated an Overweight rating for Home Depot, raising its price target from $395 to $450.
• BofA Securities analyst Robert F. Ohmes reiterated a Buy rating for Home Depot, raising its price target from $425 to $450.

Goldman Sachs Takeaways: McShane noted same-store sales growth implied an increase independent of Hurricanes Milton and Helene, but noted fourth-quarter guidance suggests a deceleration. The analyst remains bullish on the company and sees possible tailwinds from future cyclical trends.

“While housing turnover remains challenged, we think the company can benefit from an increase in consumers tapping into their home equity as interest rates come down in 2025 and from solid execution and share gains, especially with the complex pro,” McShane said.

“We think the company is positioned well for the long term as they continue to find efficiencies and cut costs which will drive operating income margin expansion when the company starts to grow the top line again,” the analyst added.

JPMorgan Takeaways: Horvers was also encouraged by Home Depot’s quarterly performance irrespective of hurricane tailwinds. The analyst believes future macroeconomic trends will benefit the company.

“This bending upward of sales trends is in-line with our view heading into this year (and our PCE math) that share of wallet headwinds are over and thus comp trends should migrate back toward wage growth of 3.5%-4% in 2025,” Horvers said.

The analyst remains focused on “do-it-yourself” performance in 2025 in a cyclical housing and improvement market.

BofA Securities Takeaways: Ohmes is also positive for the company.

“We see opportunities for HD to grow and gain share with the complex pro both organically and organically,” the analyst said. “Pro sales were positive in F3Q, and Pros engaging with elements of HD’s Pro Ecosystem (now in 17 U.S. markets) were the strongest performing Pros in the quarter.”

Ohmes raised 2025 earnings-per-share projections following earnings.

HD Price Action: Shares of Home Depot have been volatile Wednesday morning. The home improvement retailer is currently trading up 1.86% at $419.53.

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