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With a market cap of $347.2 billion, The Home Depot, Inc. (HD) is a leading home improvement retailer, offering a wide range of building materials, home improvement, lawn and garden, décor, and maintenance products through its stores and digital platforms. The company also provides installation and tool and equipment rental services to DIY consumers and professional customers.
Shares of the Atlanta, Georgia-based company have lagged behind the broader market over the past 52 weeks. HD stock has fallen 8.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 22.2%. Moreover, shares of the company have risen 1.2% on a YTD basis, compared to SPX's 13% gain.
Zooming in further, the stock has underperformed the State Street SPDR S&P Homebuilders ETF's (XHB) 3.7% return over the past 52 weeks.
The Home Depot’s shares rose marginally on May 19 after the company reported better-than-expected Q1 2026 adjusted EPS of $3.43 and sales of $41.77 billion. The stock was also supported by a 2.2% increase in comparable average ticket and the company’s continued investment in its professional customer business, helping offset a 1.3% decline in comparable transactions as consumers remained cautious about large remodeling projects.
Gains were limited, however, as Home Depot warned of choppy demand for large projects amid high mortgage rates, elevated home prices and uncertainty.
For the fiscal year ending in January 2027, analysts expect The Home Depot's adjusted EPS to grow 2.2% year over year to $15.01. The company's earnings surprise history is mixed. It beat the consensus estimates in two of the last four quarters while missing on two other occasions.
Among the 34 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 20 "Strong Buy" ratings, one "Moderate Buy," 12 "Holds,” and one "Strong Sell."
This configuration is slightly less bullish than three months ago, with 21 “Strong Buy” ratings on the stock.
On Jul. 21, Bernstein analyst Zhihan Ma maintained a “Hold” rating on Home Depot with a $346 price target.
The mean price target of $368.38 represents a 5.8% premium to HD’s current price levels. The Street-high price target of $430 suggests a 23.5% potential upside.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
