Key Stats for Home Depot Stock
- Price Change for $HD stock: 3%
- Current Share Price: $407
- 52-Week High: $439
- $HD Stock Price Target: $424
What Happened?
Home Depot (HD) stock climbed 3% yesterday despite reporting its first earnings and revenue miss since May 2014.
The home improvement giant posted adjusted earnings of $4.68 per share versus the $4.69 expected, while revenue of $45.28 billion fell slightly short of the $45.31 billion consensus estimate.
However, investors focused on the positive momentum building throughout the quarter. Comparable sales accelerated each month, growing 0.3% in May, 0.5% in June, and a strong 3.3% in July.
This marked the company’s strongest performance in over two years, with 12 of 16 merchandising departments posting positive comparable sales growth.
CEO Ted Decker reaffirmed the company’s full-year guidance, expecting total sales growth of approximately 2.8% and comparable sales growth of about 1% for fiscal 2025.
It also highlighted continued strength in big-ticket transactions over $1,000, which rose 2.6% year-over-year, and strong online sales growth of approximately 12%.
See analysts’ growth forecasts and price targets for Home Depot stock (It’s free!) >>>
What the Market Is Telling Us About Home Depot Stock
The positive reaction to HD stock suggests investors are encouraged by the sequential improvement in sales trends and the company’s confidence in maintaining its full-year outlook.
CFO Richard McPhail noted that the momentum seen through the second quarter has continued into the first two weeks of the third quarter, providing additional confidence.
Particularly encouraging was the broad-based nature of the recovery, with strength across both professional and DIY customer segments.
Home Depot’s strategic investments in its Pro ecosystem, including the SRS acquisition and pending GMS deal, are beginning to show results with market share gains in key categories like roofing and paint.
While Home Depot continues to face headwinds from the “deferral mindset” among homeowners on larger projects due to economic uncertainty and high interest rates, its focus on smaller home improvement projects appears to be resonating.
With about 55% of sales now coming from professional customers (including SRS), Home Depot is well-positioned to benefit from any recovery in housing activity while maintaining its market leadership position in home improvement.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
