Home Depot: Q4 Performance and Analyst Ratings Highlight Market Trends

With a market capitalization of $357.2 billion, The Home Depot, Inc. (HD) operates as a home improvement retailer both in the U.S. and internationally. Based in Atlanta, Georgia, the company sells a variety of products, including building materials, home improvement items, lawn and garden supplies, décor products, and facilities maintenance items.

Over the past year, HD has lagged behind the broader market. Its stock prices grew by only 6.5% in the last 52 weeks, a decline of 6.8% year-to-date. In contrast, the S&P 500 Index ($SPX) saw gains of 8.6% over the same period, with a 4.3% decrease year-to-date.

Performance Against Consumer Discretionary Sector

When narrowing the focus, HD also underperformed the Consumer Discretionary Select Sector SPDR Fund (XLY), which surged 11.5% over the past 52 weeks. However, Home Depot outperformed XLY, which experienced an 11.3% decline year-to-date.

On February 25, shares of Home Depot increased by 2.8% following the announcement of strong Q4 2024 results. Revenue climbed by 14.1% year-over-year to $39.7 billion, surpassing expectations, bolstered by an additional operating week contributing about $2.5 billion. Adjusted earnings per share (EPS) reached $3.13, exceeding analysts’ estimates by 3% and marking a 9.4% increase compared to the previous year.

Financial Projections and Analysts’ Insights

Looking ahead to the current year ending in January 2026, analysts predict a 1.5% decline in HD’s EPS year-over-year, bringing it to $15.01. Notably, the company’s earnings history is strong, as it has surpassed consensus estimates in the last four quarters.

Currently, HD holds a consensus “Strong Buy” rating among analysts. Out of 36 analysts covering the stock, 26 classify it as a “Strong Buy,” one as a “Moderate Buy,” eight recommend a “Hold,” and one suggests a “Strong Sell.”

This configuration is slightly less optimistic than a month ago, when 27 analysts rated HD as a “Strong Buy.”

On May 6, Truist Financial Corporation analyst Scot Ciccarelli provided an update, maintaining a “Buy” rating for Home Depot and increasing the price target from $291 to $393. The average price target of $423.34 indicates a potential upside of 16.7% from current levels, while the highest target of $475 suggests an impressive upside potential of 30.9%.

On the date of publication, Kritika Sarmah did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.