On August 8, 2016, Home Depot (HD) was trading at a stock price of $136.21. 23 out of 31 analysts assigned a “buy” rating to Home Depot. Eight analysts assigned a “hold” rating to the stock. None of the analysts had a “sell” recommendation. As of August 8, the 12-month price target for Home Depot’s stock was $148.85, reflecting a return potential of 9.3%.
The “buy” rating from the majority of analysts on Home Depot’s stock is backed by its impressive earnings and sales track record, its return on equity, and its positive cash flow balance. The company is likely to benefit from the improvement in the housing market.
On June 23, 2016, Nomura Securities’ upgraded Home Depot’s stock rating from “neutral” to “buy.” The favorable change in the brokerage’s rating for Home Depot was triggered by many factors like growing market share and the strong underlying market.
On August 2, Stifel Nicolaus initiated coverage on Home Depot’s stock with a “buy” rating.
Analyst ratings for peers
As of August 8, 2016, Williams-Sonoma (WSM) was trading at $53.39. Out of 30 analysts, 40% have assigned a “buy” rating, 50% have assigned a “hold” rating, and the rest have assigned a “sell” rating to the stock. The stock has been assigned a 12-month price target of $58.45, indicating a return potential of 9.5%.
Lowe’s (LOW) was trading at $81.62 as of August 8, 2016. Lowe’s received “buy” ratings from 23 out of 30 analysts and “hold” ratings from seven analysts. The stock has a target 12-month price of $87.71, which reflects a return potential of 7.5%.
Bed Bath & Beyond (BBBY) was trading at $44.96 as of August 8, 2016. Bed Bath & Beyond received a “buy” rating from only three out of 26 analysts covering the stock. 18 analysts have gone for a “hold” rating while five analysts have assigned a “sell” rating. The stock has a 12-month price target of $44.47, which indicates a negative return potential of 1.1%.
The analyst recommendations for Home Depot and home improvement retailer (RTH) peers might change based on the upcoming 2Q16 results.
For more updates, visit our Consumer Discretionary page.