Year-to-Date Gains: Home Depot, Inc. (NYSE:HD) has seen a modest 5% increase in its stock price year-to-date, despite challenges posed by a high-interest-rate environment.
Recent Growth: Over the past month, the stock has surged by 8%, largely attributed to its second quarter earnings report.
Earnings Report Insights
Same Store Sales Growth: The earnings report revealed a 1% overall growth in same store sales, with a more robust 4% growth in the U.S. market, indicating a positive outlook for the company.
Management Commentary: During the earnings call, management highlighted the importance of reducing short-term interest rates for home equity loans, which could stimulate remodeling and sales.
Jim Cramer's Analysis
Cramer's Perspective: Jim Cramer expressed his support for Home Depot, noting that the earnings results were initially confusing but ultimately reflected strong performance. He emphasized that the momentum from the previous year continued into the first half of this year.
Investment Considerations: While acknowledging Home Depot's potential, Cramer suggested that some AI stocks might offer better returns with lower risk, indicating a shift in investment focus.
Additional Insights
AI Stock Recommendations: The article hints at a report on promising AI stocks, suggesting that investors might find better opportunities in this sector compared to traditional retail stocks like Home Depot.
HD
$352.68+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
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.
18 Buy
5 Hold
1 Sell
Moderate Buy
Current: 356.990
Low
320.00
Averages
409.91
High
497.00
Current: 356.990
Low
320.00
Averages
409.91
High
497.00
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
to
Outperform
downgrade
$430 -> $410
2025-12-10
Reason
Telsey Advisory
Joseph Feldman
Price Target
$430 -> $410
2025-12-10
downgrade
Outperform
to
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.
Goldman Sachs
Buy
maintain
$406 -> $413
2025-12-10
Reason
Goldman Sachs
Price Target
$406 -> $413
2025-12-10
maintain
Buy
Reason
Goldman Sachs raised the firm's price target on Home Depot to $413 from $406 and keeps a Buy rating on the shares. Despite a still-challenging housing macro backdrop, the company is poised to accelerate growth when the macro environment improves and is also well-positioned to take share given its ongoing investments and acquisitions, the analyst tells investors in a research note.
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.
