Home Depot Faces Investigation Over Sales Forecast Miss, Shares Drop 6%

Written by Emily J. Thompson, Senior Investment Analyst

HD+0.69%

Source: Globenewswire

Updated: 1h ago

0mins

Source: Globenewswire

Investigation Launched: The Schall Law Firm is investigating whether Home Depot violated securities laws by failing to disclose critical information, potentially impacting shareholder rights.
Earnings Miss: In its Q3 2025 financial results, Home Depot reported missing sales forecasts due to a lack of storms, indicating significant pressure in certain product categories.
Market Reaction: Following the earnings announcement, Home Depot's shares fell by over 6%, reflecting investor concerns about the company's future performance and declining market confidence.
Consumer Confidence Impact: The company cited consumer uncertainty and ongoing pressures in the housing market as key factors contributing to the earnings shortfall, which may hinder future sales growth.

$347.34+Infinity%1D

Analyst Views on HD

Wall Street analysts forecast HD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HD is 409.91 USD with a low forecast of 320.00 USD and a high forecast of 497.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

24 Analyst Rating

18 Buy

5 Hold

1 Sell

Moderate Buy

Current: 344.970

Low

320.00

Averages

409.91

High

497.00

Current: 344.970

Low

320.00

Averages

409.91

High

497.00

Truist

Buy

maintain

$375 -> $390

2025-12-17

Reason

Truist

Price Target

$375 -> $390

2025-12-17

maintain

Buy

Reason

Truist raised the firm's price target on Home Depot to $390 from $375 and keeps a Buy rating on the shares as part of a broader research note previewing 2026 for Hardlines/Broadlines Consumer names. With some slower consumer trends in the second half of FY25 consumers will remain choiceful in their shopping patterns, with a continued focus on "Value", the analyst tells investors in a research note. For the company, Truist notes that with over $35 trillion of home equity essentially sitting on the sidelines and recent rate cuts, homeowners have a tremendous amount of "dry powder" to reinvest in the household's single biggest asset, adding that as long as existing home supply remains lean and home prices are flat-to-up, the firm remains bullish on the home improvement space.

DA Davidson

Buy

downgrade

$430 -> $407

2025-12-10

Reason

DA Davidson

Price Target

$430 -> $407

2025-12-10

downgrade

Buy

Reason

DA Davidson lowered the firm's price target on Home Depot to $407 from $430 but keeps a Buy rating on the shares after its FY25 and FY26 guidance. The company is taking a prudent approach to 2026, though the management is actually more bullish with the log term algo once housing recovers, the analyst tells investors in a research note. Home Depot's EPS outlook is still planned up mid-to-high single digits, but per the firm's conversations, that is more beatable than it was in the past, DA Davidson added.

RBC Capital

Sector Perform

maintain

$376 -> $366

2025-12-10

Reason

RBC Capital

Price Target

$376 -> $366

2025-12-10

maintain

Sector Perform

Reason

RBC Capital lowered the firm's price target on Home Depot to $366 from $376 and keeps a Sector Perform rating on the shares after attending the company's Investor Day presentation. The firm maintains that the company is very well-positioned for an eventual housing recovery, but the timing of that recovery might be further in the future than many are hoping for, the analyst tells investors in a research note. The prospect of lower rates will continue to put upward pressure on shares, but shares already seem to be embedding a fairly rapid housing recovery, RBC added.

Telsey Advisory

Joseph Feldman

Outperform

downgrade

$430 -> $410

2025-12-10

Reason

Telsey Advisory

Joseph Feldman

Price Target

$430 -> $410

2025-12-10

downgrade

Outperform

Reason

Telsey Advisory analyst Joseph Feldman lowered the firm's price target on Home Depot to $410 from $430 and keeps an Outperform rating on the shares. While Home Depot is a strong retailer, the sector is several years into a challenging home improvement market, the analyst tells investors. The firm believes the industry is in a bottoming phase but notes there will likely not be much improvement until 2027 and beyond. Overall, the firm continues to believe Home Depot will be a long-term winner in retail.

About HD

The Home Depot, Inc. is a home improvement specialty retailer. The Company offers an assortment of building materials, home improvement products, lawn and garden products, decor products, and facilities maintenance, repair, and operations products, in stores and online. It also provides various services, including home improvement installation services, and tool and equipment rental. The Company operates approximately 2,353 retail stores, over 800 branches and more than 325 distribution centers that directly fulfill customer orders across all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. Its stores average approximately 105,000 square feet of enclosed space, with approximately 24,000 additional square feet of outside garden area. The Company serves two primary customer groups, including both do-it-yourself (DIY) and Do-It-For-Me (DIFM) customers and Professional Customers (Pros).

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.