Home Depot (HD) stock has earned Buy ratings from multiple Wall Street analysts following the release of its Q2 earnings report. Despite posting quarterly earnings and revenue that came in just below Wall Street’s estimates, the home improvement retailer reaffirmed its full-year outlook. Consequently, top analysts have raised their price targets on HD stock, pointing to more upside ahead.
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In Q2, Home Depot reported net sales of $45.3 billion, up 4.9% from a year ago. Meanwhile, same-store sales rose 1%, just under the 1.2% forecast. Looking ahead, management projects 1% same-store sales growth and a 2% decline in adjusted EPS. After its Q2 earnings release, HD stock rose more than 3% on Tuesday.
Top Analysts Stay Bullish on HD Stock
Commenting on the results, Morgan Stanley’s four-star-rated analyst Simeon Gutman highlighted that the company’s U.S. sales have now grown for three straight quarters after falling for eight in a row. He believes this shows the housing market is starting to steady, the effects of the pandemic are fading, and Home Depot’s focus on Pro customers and DIY shoppers is working.
Meanwhile, top-rated analyst Michael Baker at D.A. Davidson raised his price target from $450 to $475 on HD stock while maintaining his Buy rating. Baker noted that Home Depot is seeing stronger demand even with mortgage rates in the high 6% range for most of the quarter. Looking ahead, expectations of a more dovish Fed by mid-next year could lead to lower mortgage rates, providing an additional boost to demand.
Similarly, Jefferies’ four-star-rated analyst Jonathan Matuszewski lifted his price target from $460 to $474, implying an upside of 16.4% from current levels. Matuszewski pointed to broad sales growth across multiple categories, a rebound in DIY sales, big-ticket comps rising at least 2.5% year over year, and the strongest e-commerce performance since mid-2022 as key positives. He also highlighted management’s reaffirmed commitment to minimal price hikes, solid momentum into August, and confidence in achieving 1% comp growth in 2025.
Is Home Depot a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on HD stock based on 17 Buys and six Holds assigned in the past three months. The average Home Depot stock price target of $441.16 per share implies an 8.34% upside potential.
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