Home Depot Inc (HD: NSD) is set to report its Q1 earnings tomorrow, May 14, before the start of trading. Analysts are cautiously optimistic about the home improvement giant’s performance, but tempering expectations for a slight decline compared to last year.
Analyst Ratings and Expectations:
Below are the Wallstreet expectation for the Q1 earnings of Home Dept
- Earnings per share (EPS) are expected to be around $3.60, down 5.8% year-over-year.
- Revenue is projected to come in at $36.6 billion, reflecting a 1.6% decrease from the first quarter of 2023.
Despite the anticipated decline, analyst sentiment on Home Depot stock remains positive. Here’s a glimpse into what some analysts are expecting:
- Seth Basham, Wedbush: Maintains a “Buy” rating on HD with a price target of $410, indicating a potential upside of 18.4%.
- Steven Zaccone, Citi: Expects Home Depot’s results to be in line with or slightly above analyst estimates. However, he anticipates continued weakness in the pet retail and electronics categories.
Stock Target Advisor’s Evaluation:
Stock Target Advisor’s gives ‘Hold’ ratings to Home Depot with a Target Price of $386, factoring in a Projected Price Change over the next 12 months of 11.42% favorable increase. Compiled market data reveals an average analyst target price for Home Depot Inc. at $376.95 within the next year, advocated by a prevailing analyst rating of ‘Strong Buy’. However, giving equal weight to positive and negative signals, our unique perspective on Home Depot Inc. paints a more neutral picture.
Final Thoughts:
The upcoming earnings report will be crucial for investors to gauge Home Depot’s ability to navigate the changing consumer spending landscape and its plans for future growth.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
