Royal Bank Of Canada Cuts Home Depot (NYSE:HD) Price Target to $342.00

Home Depot (NYSE:HD) had its price target cut by equities researchers at Royal Bank Of Canada from $343.00 to $342.00 in a research report issued on Wednesday,Benzinga reports. The brokerage presently has a “sector perform” rating on the home improvement retailer’s stock. Royal Bank Of Canada’s price target suggests a potential downside of 2.35% from the company’s previous close.

A number of other brokerages have also weighed in on HD. HSBC cut their target price on shares of Home Depot from $392.00 to $310.00 and set a “hold” rating on the stock in a research report on Wednesday, May 20th. JPMorgan Chase & Co. lowered their target price on Home Depot from $423.00 to $396.00 and set an “overweight” rating for the company in a report on Wednesday, May 20th. Mizuho set a $390.00 target price on Home Depot in a research report on Wednesday. Piper Sandler reduced their price target on Home Depot from $422.00 to $421.00 and set an “overweight” rating on the stock in a report on Wednesday, May 20th. Finally, The Goldman Sachs Group dropped their price objective on shares of Home Depot from $409.00 to $390.00 and set a “buy” rating for the company in a report on Wednesday, May 20th. Eighteen research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $375.54.

Home Depot Stock Performance

NYSE:HD traded up $12.74 on Wednesday, hitting $350.23. The company’s stock had a trading volume of 856,965 shares, compared to its average volume of 4,376,104. The company has a current ratio of 1.04, a quick ratio of 0.28 and a debt-to-equity ratio of 3.23. The firm has a market capitalization of $349.22 billion, a P/E ratio of 24.83, a price-to-earnings-growth ratio of 4.08 and a beta of 0.95. Home Depot has a one year low of $289.10 and a one year high of $426.75. The stock has a fifty day moving average of $340.08 and a two-hundred day moving average of $340.97.

Home Depot (NYSE:HD) last announced its quarterly earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 EPS for the quarter, beating analysts’ consensus estimates of $4.73 by $0.19. The business had revenue of $47.86 billion for the quarter, compared to analyst estimates of $47.24 billion. Home Depot had a net margin of 8.41% and a return on equity of 117.24%. Home Depot’s quarterly revenue was up 5.7% on a year-over-year basis. During the same quarter in the prior year, the business earned $4.68 EPS. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. Research analysts predict that Home Depot will post 14.99 earnings per share for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in HD. BlackRock Inc. purchased a new stake in Home Depot during the second quarter valued at about $28,771,247,000. Bank of America Corp DE purchased a new position in shares of Home Depot in the second quarter worth about $5,780,468,000. Norges Bank bought a new stake in shares of Home Depot in the 4th quarter valued at about $4,850,329,000. Bank of New York Mellon Corp bought a new stake in shares of Home Depot in the 2nd quarter valued at about $2,777,396,000. Finally, Corient Private Wealth LP bought a new stake in shares of Home Depot in the 2nd quarter valued at about $390,913,000. 70.86% of the stock is currently owned by hedge funds and other institutional investors.

Home Depot News Roundup

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

• Positive Sentiment: Quarterly results exceeded expectations: Adjusted EPS was $4.92 versus the $4.73 consensus, while revenue rose 5.7% year over year to $47.86 billion, above estimates of approximately $47.24 billion. Home Depot reaffirms guidance amid frozen housing market conditions
• Positive Sentiment: Comparable sales showed resilience: Companywide comparable sales increased 1.7%, including a 1.3% gain in the U.S.—the strongest comparable-sales performance since 2022. Customers are completing smaller repair and maintenance projects, and average ticket growth of 2.8% offset a 1.0% decline in transactions. Home Depot beats quarterly sales estimates on steady repair demand
• Positive Sentiment: Management reaffirmed fiscal 2026 guidance and analysts see potential for the stock to move toward $375 or higher. Home Depot also expanded three-hour Express Delivery nationwide, using more than 2,000 stores as fulfillment hubs to strengthen its Pro and do-it-yourself online business. Home Depot analysts see a path to $375 and beyond
• Neutral Sentiment: CEO Ted Decker’s medical leave remains an uncertainty for investors, but the earnings report indicated continued operational execution under the existing management team. Home Depot reports higher sales, but its CEO is on medical leave
• Negative Sentiment: The housing recovery is not yet visible: Management described conditions as a “frozen housing market,” with customers avoiding large-ticket renovations. Weak housing starts and elevated mortgage rates could limit future sales growth. Home Depot just flashed a housing market warning
• Negative Sentiment: A $730 million tariff refund largely offset rising costs, limiting its benefit to profits. High Treasury yields and Home Depot’s relatively high valuation—about 24 times earnings—also remain potential headwinds.

About Home Depot

The Home Depot, Inc (NYSE: HD) is a leading home improvement retailer that operates large-format stores and an integrated online platform offering a broad range of products and services for do-it-yourself consumers, professional contractors and businesses. The company was founded in 1978 by Bernard Marcus and Arthur Blank and is headquartered in Atlanta, Georgia. Since opening its first stores at the end of the 1970s, Home Depot has grown into a multinational retailer known for its orange-branded stores and wide assortment of home improvement merchandise.

Home Depot’s core business includes the sale of building materials, lumber, tools, hardware, appliances, paint, plumbing and electrical supplies, lawn and garden products, and home décor.