What Analysts Think of Home Depot Stock Ahead of Earnings

Key Takeaways

Home Depot (

HD

) is scheduled to report fourth-quarter earnings before the bell on Tuesday, with analysts expecting sales to have risen year-over-year despite projecting comparable store sales to have declined for a ninth consecutive quarter.

Analysts who follow Home Depot and are tracked by Visible Alpha are mostly bullish on the home-improvement giant’s stock, with eight “buy” ratings, along with three “hold” and one “sell.” The retailer has an average price target of about $433, about 10% above the stock’s level Thursday afternoon.

Home Depot is expected to report adjusted
earnings per share (EPS)
of $3.02 for the final quarter of 2024, along with sales of $39.06 billion, up from $34.79 billion a year ago. Home Depot
topped estimates last quarter
, although CEO Ted Decker said that “macroeconomic uncertainty remains.”

Comp Store Sales Expected To Decline Again

However, analysts also forecast that Home Depot’s
comparable store sales
will have declined 1.66% year-over-year. The retailer and
rival Lowe’s
(

LOW

) have said that sales for
“big-ticket” items
like appliances have been affected by inflation.

JPMorgan analysts said in a recent note that they expect Home Depot to top fourth-quarter estimates, forecasting comparable sales growth of 0.8%. Given the retailer’s “three long years” since its last positive comparable sales result in the third quarter of 2022, the analysts said they expect Home Depot to be conservative in its projections for 2025.

The JPMorgan analysts lifted their
price target
for Home Depot stock to $475 from $450, and said they were adding it to their “Analyst Focus List as a growth investment,” given its valuation relative to retail peers’.

Home Depot shares, which were edging lower in recent trading, are up roughly 9% over the last 12 months.

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