Zacks Research Reduces Earnings Estimates for Home Depot

The Home Depot, Inc. (NYSE:HD) – Analysts at Zacks Research dropped their FY2026 earnings per share estimates for shares of Home Depot in a research note issued to investors on Tuesday, December 2nd. Zacks Research analyst Team now anticipates that the home improvement retailer will post earnings of $14.48 per share for the year, down from their previous estimate of $14.96. Zacks Research currently has a “Strong Sell” rating on the stock. The consensus estimate for Home Depot’s current full-year earnings is $15.13 per share. Zacks Research also issued estimates for Home Depot’s Q1 2027 earnings at $3.68 EPS, Q2 2027 earnings at $4.82 EPS, Q3 2027 earnings at $4.03 EPS, Q4 2027 earnings at $2.93 EPS, FY2027 earnings at $15.46 EPS, Q1 2028 earnings at $4.06 EPS, Q2 2028 earnings at $5.27 EPS, Q3 2028 earnings at $4.41 EPS and FY2028 earnings at $16.86 EPS.

A number of other equities analysts have also weighed in on the company. JPMorgan Chase & Co. lowered their target price on Home Depot from $444.00 to $423.00 and set an “overweight” rating on the stock in a research note on Wednesday, November 19th. UBS Group decreased their price objective on Home Depot from $475.00 to $445.00 and set a “buy” rating on the stock in a report on Wednesday, November 19th. Daiwa Capital Markets dropped their target price on Home Depot from $399.00 to $348.00 and set a “neutral” rating for the company in a report on Monday, November 24th. DA Davidson set a $430.00 target price on shares of Home Depot in a research report on Wednesday, November 19th. Finally, Gordon Haskett lowered their price target on shares of Home Depot from $345.00 to $330.00 and set a “hold” rating on the stock in a research report on Wednesday, November 19th. Twenty-one research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, Home Depot has an average rating of “Moderate Buy” and an average target price of $403.93.

Home Depot Trading Down 2.0%

Shares of HD stock opened at $350.66 on Friday. Home Depot has a 12-month low of $326.31 and a 12-month high of $436.36. The company has a market capitalization of $349.09 billion, a PE ratio of 23.90, a price-to-earnings-growth ratio of 6.31 and a beta of 1.06. The firm has a 50 day moving average price of $374.17 and a two-hundred day moving average price of $379.93. The company has a quick ratio of 0.29, a current ratio of 1.05 and a debt-to-equity ratio of 3.82.

Home Depot (NYSE:HD) last announced its earnings results on Tuesday, November 18th. The home improvement retailer reported $3.74 EPS for the quarter, missing the consensus estimate of $3.83 by ($0.09). Home Depot had a return on equity of 160.74% and a net margin of 8.77%.The company had revenue of $41.35 billion for the quarter, compared to the consensus estimate of $41.06 billion. During the same period in the previous year, the firm posted $3.78 EPS. The business’s quarterly revenue was up 2.8% on a year-over-year basis. Home Depot has set its FY 2025 guidance at 14.478-14.478 EPS.

Home Depot Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 18th. Investors of record on Thursday, December 4th will be given a $2.30 dividend. The ex-dividend date is Thursday, December 4th. This represents a $9.20 dividend on an annualized basis and a dividend yield of 2.6%. Home Depot’s dividend payout ratio (DPR) is presently 62.71%.

Insider Buying and Selling

In related news, EVP William D. Bastek sold 2,303 shares of the company’s stock in a transaction dated Friday, September 12th. The shares were sold at an average price of $423.12, for a total transaction of $974,445.36. Following the completion of the sale, the executive vice president owned 24,235 shares of the company’s stock, valued at $10,254,313.20. This represents a 8.68% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 0.10% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Home Depot

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. lifted its stake in Home Depot by 0.3% during the third quarter. Vanguard Group Inc. now owns 98,310,031 shares of the home improvement retailer’s stock worth $39,834,241,000 after purchasing an additional 331,217 shares during the last quarter. State Street Corp increased its stake in shares of Home Depot by 0.7% in the 2nd quarter. State Street Corp now owns 46,015,836 shares of the home improvement retailer’s stock valued at $16,871,246,000 after purchasing an additional 300,352 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of Home Depot by 1.4% during the 2nd quarter. Geode Capital Management LLC now owns 22,978,809 shares of the home improvement retailer’s stock worth $8,394,611,000 after buying an additional 327,674 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its position in shares of Home Depot by 1.1% during the 2nd quarter. Charles Schwab Investment Management Inc. now owns 14,568,860 shares of the home improvement retailer’s stock worth $5,341,724,000 after buying an additional 153,582 shares during the last quarter. Finally, Norges Bank bought a new stake in shares of Home Depot during the 2nd quarter worth $4,885,603,000. 70.86% of the stock is currently owned by institutional investors and hedge funds.

Home Depot Company Profile

The Home Depot, Inc operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also offers installation services for flooring, water heaters, bath, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, and windows.