Home Depot (HD) currently holds an average brokerage recommendation (ABR) of 1.61 on a scale of 1 to 5, based on the ratings from 37 brokerage firms. This score indicates a consensus leaning toward Strong Buy, with 26 firms suggesting Strong Buy and one advocating for Buy, making up approximately 70.3% and 2.7% of all recommendations, respectively.
Despite the favorable ABR, concerns exist regarding the reliability of brokerage recommendations. Studies indicate that these ratings often exhibit a bias due to analysts’ vested interests. A significant imbalance is noted, with firms typically issuing five Strong Buy ratings for every Strong Sell. Home Depot’s Zacks Rank is currently #3 (Hold), indicating a more cautious outlook as the consensus earnings estimate has remained constant at $15.04 over the past month.
Investors are advised to consider the distinction between ABR and the Zacks Rank; while the former may not be updated frequently, the latter reacts more promptly to earnings estimate revisions, offering a potentially clearer view of stock performance trends.
