Home Depot, Inc. (NYSE:HD), the largest home improvement specialty retailer globally, has faced mixed sentiments from Wall Street in recent times. While the company maintains a dominant position in its industry, its stock performance has lagged behind the broader market, with modest gains over the past year and a decline in 2024.
Following the company’s Q1 results, which saw a decline in comparable sales and revenue slightly below analyst expectations, analysts have adjusted their outlook on HD stock. Despite the subdued performance, Home Depot’s earnings surprise history remains robust, with consistent beats in recent quarters.
Currently, analysts lean towards a “Moderate Buy” rating for HD stock, with a majority of analysts recommending either a “Strong Buy” or “Hold.” This sentiment has shifted slightly more bullish in the past few months, with analysts maintaining optimism about the company’s long-term prospects.
Notably, Evercore ISI’s analyst reaffirmed an “Outperform” rating on HD stock, although they lowered the price target, suggesting a significant upside potential from current levels. The mean price target reflects a premium to the current price, indicating cautious optimism among analysts.
Overall, while Home Depot faces challenges in the short term, including market competition and economic uncertainties, analysts see the potential for growth and value in the company’s stock, aligning with its track record of resilience and profitability in the home improvement retail sector.
Featured Image: Megapixl
