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Investing.com - DA Davidson has reiterated its Buy rating and $450.00 price target on Home Depot (NYSE:HD), a prominent player in the Specialty Retail industry with a market cap of $392 billion, following the company’s latest quarterly results. According to InvestingPro analysis, the stock is currently trading near its Fair Value.
The home improvement retailer’s comparable sales were approximately in line with expectations, but showed significant improvement throughout the quarter. According to DA Davidson, July comparable sales increased by 3.3%, as reported on CNBC, marking the best monthly performance of the year.
Earnings per share came in slightly below expectations after adjustments, though DA Davidson attributed this to below-the-line items rather than operational issues. The company’s gross margins exceeded expectations while operating margins met forecasts.
Home Depot maintained all previous guidance, which aligned with market consensus. Operating profits were slightly below consensus due to expense timing, according to the research firm.
DA Davidson characterized the quarter as "adequate" and suggested the results would likely not significantly impact the stock price, noting that Home Depot shares are currently more influenced by interest rate trends than by quarterly performance.
In other recent news, Home Depot reported a 1.4% growth in U.S. comparable sales for the second quarter, slightly below the 2.0% estimate by Truist Securities. Despite this, Truist maintained its Buy rating and increased its price target for Home Depot to $433, reflecting confidence in the company’s future earnings. Telsey Advisory Group also reiterated its Outperform rating with a $455 price target, projecting positive comparable sales growth for 2025.
In terms of acquisitions, Home Depot has withdrawn and refiled its Hart-Scott-Rodino Act form for the acquisition of GMS Inc (NYSE:GMS)., allowing more time for review by the U.S. Department of Justice. Additionally, Stifel reported that Home Depot continues to gain market share in the appliance category, with significant pricing acceleration noted in this sector. These developments suggest ongoing strategic moves by Home Depot to strengthen its market position.
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