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Investing.com - Home Depot (NYSE:HD) received a reiterated Buy rating from Truist Securities, which maintained its $433.00 price target on Tuesday. According to InvestingPro data, the stock currently trades near Fair Value levels, with analysts’ targets ranging from $308 to $475. The company maintains a "GOOD" overall financial health score, supported by 39 consecutive years of dividend payments.
The home improvement retailer delivered second-quarter U.S. comparable sales growth of 1.4%, slightly below Truist’s 2.0% estimate, while total sales came within 0.1 percentage points of the firm’s forecast. These results came despite significant weather headwinds early in the quarter and persistently high interest rates. The company maintains strong fundamentals with a 33.3% gross profit margin and has demonstrated resilience with low price volatility. Get deeper insights into Home Depot’s performance metrics with InvestingPro, which offers 8 additional exclusive ProTips.
Truist noted that its card data suggests Home Depot’s sales improved notably throughout the quarter. The firm highlighted that this marks the company’s third consecutive quarter of positive comparable sales in the U.S.
The research firm indicated that consumers continue to adjust to the higher interest rate environment, which has persisted for over four years, even as markets begin to anticipate potential rate relief from the Federal Reserve.
Truist also pointed to Home Depot’s ongoing infrastructure and capabilities development, positioning the company to capitalize on an eventual acceleration in home improvement and repair activity.
In other recent news, Home Depot announced its decision to withdraw and refile its Premerger Notification and Report Form under the Hart-Scott-Rodino Act for its pending acquisition of GMS Inc (NYSE:GMS). This move aims to provide additional review time for the U.S. Department of Justice’s Antitrust Division. Truist Securities has reiterated its Buy rating on Home Depot, maintaining a $417 price target following the acquisition agreement with GMS, valued at approximately $5.5 billion. Additionally, Truist Securities raised its price target for Home Depot to $433, maintaining a Buy rating and estimating a 28x multiple on forward twelve-month earnings per share. Telsey Advisory Group also reiterated an Outperform rating and a $455 price target, projecting positive comparable sales growth for Home Depot in upcoming quarters. In the appliance category, Home Depot continues to gain market share, as reported by Stifel, highlighting an acceleration in pricing within this sector. These developments reflect a series of strategic moves and positive analyst outlooks for Home Depot.
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