As of November 15, 2017, Home Depot (HD) was trading at $165.47. On the same day, analysts were expecting the company’s stock price to reach $177.63 in the next 12 months, which represents a return potential of 7.3%.
The better-than-expected 3Q17 earnings and the increased 2017 SSSG (same-store sales growth), revenue, and EPS guidance by the company’s management appear to have compelled analysts to raise their target price. Before the announcement of 3Q17 earnings, analysts had forecasted a target price of $172.83. Since the announcement of 3Q17 earnings, Credit Suisse has increased its target price from $171 to $175, Wedbush has raised the target price from $165 to $170, and RBCD has increased its target price from $183 to $186.
The target price and return potential of Home Depot’s peers are as follows:
- Lowe’s Companies (LOW) has a target price of $85.68, which represents a return potential of 9.3%.
- Bed Bath & Beyond (BBBY) has a target price of $24.06, which represents a return potential of 20.6%.
- Williams-Sonoma (WSM) has a target price of $50.60, which represents a fall of 0.4% from its current stock price.
Of the 33 analysts that follow Home Depot, 72.7% rate it a “buy,” and 27.3% rate it a “hold.” None of the analysts are recommending a “sell.”
Home Depot is currently trading below analysts’ average target price. However, this doesn’t mean an automatic “buy.” Investors are advised to carefully analyze various parameters discussed in our earlier articles before making any investment decisions.