Home Depot (HD), a home improvement retailer, is set to announce its Q4 results next week on February 25 before the market opens. HD stock has gained over 10% over the past year, driven by a resilient housing market, steady consumer spending, and strong operational execution. Wall Street analysts expect the company to report earnings of $3.03 per share, up 7% year-over-year.
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Also, revenues are expected to grow by 12% from the year-ago quarter to $39.09 billion, according to data from the TipRanks Forecast page. It’s important to highlight that HD has surpassed the consensus EPS estimates in all of the last nine quarters.
Analysts’ Views on HD Ahead of Q4 Results
Ahead of HD’s Q4 results, Telsey Advisory analyst Joe Feldman kept an Outperform rating on the stock with a $455 price target. Feldman highlights that though consumer pressures from inflation and high interest rates remain, he sees modest upside for Q4 due to solid retail sales. Looking ahead, Feldman expects a rebound in 2025 as comparisons ease and the housing market gains strength. He also believes that rising wages and steady home prices should drive home improvement demand.
Similarly, Wells Fargo analyst Zachary Fadem raised Home Depot’s price target from $440 to $450, maintaining an Overweight rating. The firm sees Q4 trends improving and expects 2025 estimates to gradually move higher.
Options Traders Anticipate a Minor Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 4.75% move in either direction.
Is Home Depot Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on HD stock based on nine Buys and two Holds assigned in the past three months, as indicated by the graphic below. The average HD price target of $451.09 per share implies 14.30% upside potential.
