FY2028 EPS Estimates for Home Depot Cut by Erste Group Bank

The Home Depot, Inc. (NYSE:HD) – Analysts at Erste Group Bank dropped their FY2028 earnings estimates for Home Depot in a report issued on Tuesday, September 8th. Erste Group Bank analyst S. Lingnau now expects that the home improvement retailer will post earnings of $16.02 per share for the year, down from their previous forecast of $16.05. The consensus estimate for Home Depot’s current full-year earnings is $15.00 per share.

Home Depot (NYSE:HD) last issued its quarterly earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 earnings per share for the quarter, topping analysts’ consensus estimates of $4.73 by $0.19. Home Depot had a return on equity of 106.42% and a net margin of 8.41%.The firm had revenue of $47.86 billion during the quarter, compared to the consensus estimate of $47.24 billion. During the same period last year, the business posted $4.68 EPS. The business’s revenue was up 5.7% compared to the same quarter last year. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS.

A number of other brokerages also recently weighed in on HD. Mizuho lifted their target price on Home Depot from $385.00 to $390.00 and gave the stock an “outperform” rating in a report on Wednesday, August 19th. Evercore cut their price target on Home Depot from $415.00 to $400.00 and set an “outperform” rating on the stock in a report on Wednesday, May 20th. Wells Fargo & Company raised their price objective on shares of Home Depot from $360.00 to $400.00 and gave the stock an “overweight” rating in a research report on Tuesday, August 11th. Truist Financial lifted their price objective on shares of Home Depot from $369.00 to $373.00 and gave the company a “buy” rating in a research note on Wednesday, August 19th. Finally, Robert W. Baird dropped their target price on shares of Home Depot from $430.00 to $380.00 and set an “outperform” rating on the stock in a research report on Wednesday, May 20th. Eighteen research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $375.18.

Home Depot Stock Down 1.6%

Shares of Home Depot stock opened at $305.58 on Friday. Home Depot has a one year low of $289.10 and a one year high of $426.75. The company has a debt-to-equity ratio of 2.64, a current ratio of 1.08 and a quick ratio of 0.31. The stock’s 50-day moving average is $336.12 and its 200 day moving average is $334.07. The firm has a market cap of $304.87 billion, a price-to-earnings ratio of 21.38, a PEG ratio of 3.42 and a beta of 0.95.

Home Depot Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 17th. Shareholders of record on Thursday, September 3rd will be paid a $2.33 dividend. This represents a $9.32 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date of this dividend is Thursday, September 3rd. Home Depot’s dividend payout ratio (DPR) is 65.22%.

Insider Activity

In related news, CFO Richard V. Mcphail sold 5,989 shares of the company’s stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $348.40, for a total value of $2,086,567.60. Following the sale, the chief financial officer owned 48,104 shares in the company, valued at $16,759,433.60. This represents a 11.07% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Michael F. Rowe sold 710 shares of the firm’s stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $336.76, for a total transaction of $239,099.60. Following the completion of the transaction, the executive vice president directly owned 6,838 shares in the company, valued at approximately $2,302,764.88. The trade was a 9.41% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 9,154 shares of company stock worth $3,132,798 over the last three months. 0.08% of the stock is currently owned by insiders.

Institutional Trading of Home Depot

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. California State Teachers Retirement System grew its holdings in Home Depot by 34,873.9% during the second quarter. California State Teachers Retirement System now owns 525,674,125 shares of the home improvement retailer’s stock worth $185,394,750,000 after buying an additional 524,171,077 shares in the last quarter. BlackRock Inc. bought a new position in Home Depot during the 2nd quarter valued at $28,771,247,000. Bank of America Corp DE bought a new position in Home Depot during the 2nd quarter valued at $5,780,468,000. Norges Bank purchased a new position in Home Depot during the 4th quarter worth $4,850,329,000. Finally, Bank of New York Mellon Corp purchased a new position in Home Depot during the 2nd quarter worth $2,777,396,000. 70.86% of the stock is owned by institutional investors.

Trending Headlines about Home Depot

Here are the key news stories impacting Home Depot this week:

• Positive Sentiment: Home Depot continues to benefit from momentum among professional customers, digital sales growth and faster fulfillment, which could support market-share gains and future growth despite a challenging housing environment. Home Depot Drops 12.4% in a Month: Time to Buy or Stay Cautious?
• Positive Sentiment: Home Depot is highlighted as a company with a durable record of dividend increases, potentially making the stock more attractive to income-focused investors during a cyclical downturn. 5 Stocks That Keep Raising Their Dividend Regardless Of The Market
• Neutral Sentiment: A quantitative signal has emerged that may interest contrarian options traders, although it does not change the company’s underlying operating outlook. A Rare Quant Signal Just Flashed for Contrarian Options Traders in Home Depot Stock
• Negative Sentiment: The key concern is that sales growth appears to be coming from larger customer baskets rather than more shopping visits. Continued reductions in traffic could make growth harder to sustain, particularly while the housing market remains effectively frozen. What Happens To Home Depot Stock If Shoppers Keep Visiting Less?
• Negative Sentiment: Analysts continue to cite housing weakness and cost pressures as risks. Sanford C. Bernstein lowered its price target from $354 to $344 and maintained a “market perform” rating, signaling limited near-term conviction.

About Home Depot

The Home Depot, Inc is a home improvement retailer that sells building materials, appliances, decor, hardware, tools, paint, lawn and garden products, and related merchandise. The company serves do-it-yourself customers, professional contractors, homebuilders, and other commercial customers through its retail stores and digital platforms.

Home Depot also provides services such as equipment and tool rental, delivery, installation, and project support. Its professional-focused offerings include job-lot quantities, specialized products, credit services, and account support designed for contractors and other trade customers.

Founded in 1978 by Bernie Marcus, Arthur Blank, Ken Langone, and Pat Farrah, the company is headquartered in Atlanta, Georgia.