The Home Depot, Inc. Stock Price Targets
Comprehensive analysis of short, mid, and long-term price targets for The Home Depot, Inc. (HD).
Give me a comprehensive price target analysis for The Home Depot, Inc. (HD).
Comprehensive Price Target Analysis for The Home Depot, Inc. (HD)
Executive Summary
Home Depot (HD) exhibits a resilient business model with a current trading price of approximately $397.70. With a strong market cap exceeding $395 billion and solid earnings performance, the stock is well-positioned for moderate growth. Its valuation metrics, such as a P/E ratio around 27 and a high Price-to-Book ratio (~37), suggest premium valuation in line with its stable market leadership. The technical setup indicates momentum, supported by moving averages, RSI, and MACD, favoring a bullish outlook. The analyst consensus target of $447.50 median and a high estimate of $475.00 provides a plausible appreciation range, with key support levels around $335.
Fundamental Analysis
| Metric | Value | Commentary |
|---|---|---|
| Market Cap | ~$396B | Large-cap, stability, and market influence |
| P/E (Trailing) | ~27 | Reflects growth expectations |
| P/B | ~37 | Premium valuation, justified by strong market share |
| Debt/Equity | ~575 | High leverage, though typical for a retail giant |
| Dividend Yield | 2.29% | Attractive income component |
| Cash & Debt | Cash ~$2.8B, Debt ~$61.3B | Financial leverage and cash position |
The company's high market capitalization and margins underscore its dominant position and operational efficiency. Despite high debt levels, its cash flow supports leverage, and dividend payouts enhance shareholder value.
Earnings Analysis
| Aspect | Findings |
|---|---|
| Recent Earnings | Consistent net income (~$3.4B) across recent quarters |
| EPS Trend | Slight upward trajectory with current EPS ~3.85 (yearly) |
| EPS Revisions | Slight positive revisions (+2 over the last 7 days, +4 over 30 days) indicate analyst confidence |
| Earnings Quality | Revenue growth (~$39.9B to ~$40.2B) and margin stability support earnings sustainability |
Technical Analysis
| Indicator | Observation | Level |
|---|---|---|
| Price Action | Steady upward trend, recent high of ~$407 | Resistance potential |
| Moving Average (50-day) | Around 366 – supports current price | Support |
| RSI (14) | At ~67, approaching overbought | Caution on short-term overextension |
| MACD | Bullish with recent crossing above signal | Momentum favoring upside |
Analyst Consensus & Price Targets
| Metric | Value | Notes |
|---|---|---|
| Current Price | ~$397.70 | Baseline |
| Median Target | $447.50 | Upside of ~12.5% |
| High Target | $475.00 | Possible significant uplift |
| Number of Analysts | 32 | Broad analyst coverage |
Price Target Analysis
Using the analyst targets, the price projection context is as follows:
Short-Term (3 months)
- Price Target: ~$447.50
- Justification: Recent earnings stability, bullish technical signals, and positive analyst revisions point toward reaching the median target.
- Drivers: Seasonal demand, housing market stability, and consumer spending trends.
Mid-Term (12 months)
- Price Target: ~$447.50 to $475.00
- Justification: Sustained earnings momentum, continued technical strength, and analyst optimism.
- Drivers: Renovation/remodeling trends, expansion initiatives, and economic resilience.
Long-Term (3+ years)
- Price Target: $475+ or higher
- Justification: Market share leadership, potential margins expansion, and strategic investments.
- Drivers: E-commerce growth, supply chain efficiencies, and macroeconomic tailwinds.
Support & Resistance Lines
- Support (Low Target): $335 (Red line)
- Median Target Resistance: $447.50 (Green line)
- High Target (Resistance): $475 (Blue line)
These lines are extended 30 days into the future, providing visible support and resistance levels for traders and investors.
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