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Deep Dive Into Home Depot Stock: Analyst Perspectives (14 Ratings)

Benzinga·09/18/2025 13:00:56
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Home Depot (NYSE:HD) underwent analysis by 14 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 5 9 0 0 0
Last 30D 0 1 0 0 0
1M Ago 2 6 0 0 0
2M Ago 2 1 0 0 0
3M Ago 1 1 0 0 0

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $452.43, a high estimate of $497.00, and a low estimate of $430.00. Observing a 2.97% increase, the current average has risen from the previous average price target of $439.38.

price target chart

Breaking Down Analyst Ratings: A Detailed Examination

The perception of Home Depot by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Spencer Hanus Wolfe Research Announces Outperform $497.00 -
Zachary Fadem Wells Fargo Raises Overweight $450.00 $420.00
David Bellinger Mizuho Raises Outperform $450.00 $435.00
Simeon Gutman Morgan Stanley Raises Overweight $430.00 $415.00
Christopher Horvers JP Morgan Lowers Overweight $452.00 $460.00
Michael Baker DA Davidson Raises Buy $475.00 $450.00
Peter Benedict Baird Raises Outperform $450.00 $425.00
Michael Baker DA Davidson Maintains Buy $450.00 $450.00
Joseph Feldman Telsey Advisory Group Maintains Outperform $455.00 $455.00
W. Andrew Carter Stifel Raises Buy $432.00 $425.00
Joseph Feldman Telsey Advisory Group Maintains Outperform $455.00 $455.00
Scot Ciccarelli Truist Securities Raises Buy $433.00 $417.00
Michael Baker DA Davidson Maintains Buy $450.00 $450.00
Joseph Feldman Telsey Advisory Group Maintains Outperform $455.00 $455.00

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: Offering insights into predictions, analysts assign qualitative values, 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.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Home Depot's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Home Depot analyst ratings.

Discovering Home Depot: A Closer Look

Home Depot is the world's largest home improvement specialty retailer, operating 2,353 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the US, Canada, and Mexico. Its stores offer 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 Interline Brands in 2015 allowed Home Depot to enter the MRO business, which has been expanded through the tie-up with HD Supply (2020). The 2024 tie-up with SRS will help grow professional demand in roofing, pool, and landscaping projects, while the pending acquisition of GMS will lift building product sales.

Unraveling the Financial Story of Home Depot

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: Home Depot displayed positive results in 3M. As of 31 July, 2025, the company achieved a solid revenue growth rate of approximately 4.87%. This indicates a notable increase in the company's 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 excels beyond industry benchmarks, reaching 10.05%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Home Depot's ROE excels beyond industry benchmarks, reaching 48.88%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Home Depot's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.57% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: With a high debt-to-equity ratio of 5.75, Home Depot faces challenges in effectively managing its debt levels, indicating potential financial strain.

The Basics of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

This article was generated by Benzinga's automated content engine and reviewed by an editor.