april 27, 2021

HD Home Depot Inc Forecast

Shares repurchase programs are generally a sign that the company’s board of directors believes its stock is undervalued. Home Depot announced a quarterly dividend on Thursday, August 17th. Investors of record on Thursday, August 31st will be paid a dividend of $2.09 per share on Thursday, September 14th. This represents a $8.36 dividend on an annualized basis and a dividend yield of 2.77%. The company is scheduled to release its next quarterly earnings announcement on Tuesday, November 21st 2023.

  • The understanding would help us assert The Home Depot stock projection for 2022 and beyond.
  • As of 10 March, over the period of five years HD stock price surged 116%, in comparison to an 80.3% surge in the S&P 500 index during the same period.
  • MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation.

Home Depot, like many retailers, experienced a surge in sales during the COVID-19 pandemic as consumers turned to home improvement projects while spending more time at home. However, as the world entered the post-pandemic era, the company’s growth began to freeze due to two key factors. Prior to today’s trading, shares of the home-improvement retailer had lost 8.15% over the past month. This has lagged the Retail-Wholesale sector’s loss of 3.11% and the S&P 500’s loss of 2.86% in that time. Home Depot issued an update on its FY 2023 earnings guidance on Tuesday, August, 15th. The company provided EPS guidance of $14.52-$15.52 for the period, compared to the consensus estimate of $14.96.

This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. HD’s industry had an average PEG ratio of 1.9 as of yesterday’s close. The Home Depot stock forecasts are adjusted once a day based on the closing price of the previous trading day. Founded in 1993, The Motley Fool is a financial services company dedicated to making how to use meta trader 4 the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. The stellar earnings in the final quarter of the fiscal year 2021 and the entirety of the fiscal year ended 30 January 2022, reflect the company’s strong sales.

Out of the most recent ratings, Morgan Stanley analyst Simeon Gutman rated the stock as ‘overweight’, lowering the stock price target from $420 to $380 on 23 February. In addition, Loop Capital’s Laura Champine also lowered the stock price target from $380 to $320. Analyst ratings compiled by MarketBeat shared different price targets for The Home Depot stock. The consensus rating was ‘buy’ based on 24 analyst views as of 10 March. A major reason behind the stock’s strong upward momentum was the increase in overall sales, owing to high-priced items such as home appliances and vinyl plank flooring, along with installation services.

The company’s goal here is to provide a seamless experience between online and physical retail they call The One Home Depot strategy. 1984 also brought the company’s first expansions outside its home territory of Georgia. By the end of the year, there were 19 Home Depots, and by 1989 it was indeed the largest home improvement retailer in the U.S.

Good Investment?

Home Depot has generated $16.01 earnings per share over the last year ($16.01 diluted earnings per share) and currently has a price-to-earnings ratio of 18.9. Earnings for Home Depot are expected to grow by 6.63% in the coming year, from $15.24 to $16.25 per share. Home Depot has not formally confirmed its next earnings publication date, but the company’s estimated earnings date is Tuesday, trade bonds online November 21st, 2023 based off prior year’s report dates. The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice.

Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice.

According to 25 stock analysts, the average 12-month stock price forecast for The Home Depot stock is $342.12, which predicts an increase of 13.22%. It uses the current share price and divides it by the total earnings per share for the last 12 months. Despite the recent dip in Home Depot’s profitability, it’s crucial to note that Home Depot’s dividend growth story remains strong. Revenues did decline, but the company successfully maintained a robust operating margin of 15.4%. Although this marks a slight decline from the previous year’s 16.5%, the bottom line wasn’t badly affected. Notably, HD’s Q2 EPS of $4.65 only recorded a modest 7.9% year-over-year decrease.

Home Depot MarketRank™ Forecast

In fact, Menear said the company achieved a milestone of more than $150bn in sales, marking another record year for the company. As of 10 March, over the period of five years HD stock price surged 116%, in comparison to an 80.3% surge in the S&P 500 index during the same period. In particular, the stock price marked a strong uptick from March 2020, around the time when the pandemic tightened its grip around the world. Home Depot’s management expects that EPS is set to decline by a rate between 7% and 13% compared to Fiscal 2022. Assuming a decline of 10% (the midpoint of this range), EPS should land close to $15.

When looking for The Home Depot stock predictions, it’s important to bear in mind that analysts’ forecasts can be wrong. Projections are based on making fundamental and technical studies of the HD stock performance. As far as Wall Street’s view on the stock goes, Home Depot features a Moderate Buy consensus rating based on 15 Buy and eight Hold recommendations assigned in the past three months. At $350.74, the average Home Depot stock price target suggests 15.6% upside potential.

Analyst Estimates

The Home Depot underwent a series of changes recently, both in terms of its leadership roles and operations. The home improvement retailer’s market capitalisation stood at $328.61bn, making the firm the 25th most valuable firm worldwide, data by CompaniesMarketCap indicated. Home Depot (HD) closed the most recent trading day at $301.82, moving -0.24% from the previous trading session. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq gained 0.22%. One share of HD stock can currently be purchased for approximately $302.16. It moved into the Mexican market in 2002 and opened its first landscape supply.

“HD” Stock Prediction for Next Days and Weeks

The company issued revenue guidance of $149.53 billion-$154.25 billion, compared to the consensus revenue estimate of $152.28 billion. Dividend Per Share is a financial indicator equal to the ratio of the company’s net profit available for distribution to the annual average of ordinary shares. At the time of writing on 10 March, analysts predicted The Home Depot stock would move up ahead, owing to the strong demand for its diverse range of products and services. The Home Depot stock may be a good buy, considering its impressive sales over the fiscal year 2021. Although, whether or not the stock is a good fit for you will depend on a number of factors including your attitude to risk and expertise in the market.

The company also teamed up with Walmart GoLocal to raise its same-day and next-day delivery operations for home improvement customers in the US. The Home Depot began offering delivery with Walmart GoLocal across select markets, and expanded across multiple markets across the country by end-2021. Additionally, Wall Street predicts mid-single-digit EPS growth in the coming year, driven by a recovering home improvement industry and Home Depot’s ongoing share buybacks (2.1% decrease in share count year-over-year in Q2). This reaffirms Home Depot’s potential for continued dividend growth.

In 2008 the company experienced its first decline in business due to the housing market bubble and subsequent economic recession, but the company was able to weather the storm. Growth was back on the table in 2013, and momentum has built since then. MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation. The EV / EBITDA ratio shows the ratio of the cost (EV) to its profit before tax, interest and amortization (EBITDA).

Stock Forecast for the Price of an Home Depot Share in Sep 2025.

This would allow us to look at the stock’s performance before the pandemic hit across three globe and the share price movement thereafter. The understanding would help us assert The trading quotes psychology for 2022 and beyond. The first indication that Home Depot’s profitability remains quite strong is management’s latest dividend increase, which was in the double digits.

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