What is the fair price for Home Depot stock?
The 97 analysts offering price forecasts for Home Depot have a median target of 350.80, with a high estimate of 425.00 and a low estimate of 280.00.
As of 2024-07-24, the Fair Value of Home Depot Inc (HD) is 107.60 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 359.62 USD, the upside of Home Depot Inc is -70.08%.
The average price target for Home Depot is $385.39. This is based on 28 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $426.00 ,the lowest forecast is $300.00. The average price target represents 6.09% Increase from the current price of $363.25.
Fair Value Estimate for Home Depot Stock
With its 2-star rating, we believe Home Depot's stock is overvalued compared with our long-term fair value estimate of $265 per share.
| High | $426.00 |
|---|---|
| Median | $390.00 |
| Low | $315.00 |
| Average | $382.41 |
| Current Price | $353.29 |
the price of something at which both a seller and a buyer are willing to strike a deal.
Which store offers better prices, Home Depot or Lowe's? Both stores are competitive in pricing, and they often price-match each other. The best strategy to get the most value is to compare prices for specific items you're interested in. Promotions and discounts also vary, so keep an eye on sales at both stores.
The financial health and growth prospects of HD, demonstrate its potential to outperform the market. It currently has a Growth Score of A. Recent price changes and earnings estimate revisions indicate this would be a good stock for momentum investors with a Momentum Score of A.
- The all-time high Home Depot stock closing price was 395.20 on March 21, 2024.
- The Home Depot 52-week high stock price is 396.87, which is 12.3% above the current share price.
- The Home Depot 52-week low stock price is 274.26, which is 22.4% below the current share price.
Largest shareholders include Vanguard Group Inc, BlackRock Inc., State Street Corp, Capital World Investors, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, VFINX - Vanguard 500 Index Fund Investor Shares, Geode Capital Management, Llc, Morgan Stanley, Bank Of America Corp /de/, and Capital Research ...
Will Home Depot stock recover?
Key Points. Home Depot underperformed the S&P 500 over the past three years. High interest rates and a soft housing market are throttling its sales. It should gradually recover over the next three years.
Home Depot posted fiscal first-quarter earnings that beat expectations and revenue that missed estimates. The home improvement retailer is seeing customers defer major home projects due to high interest rates.
Home Depot reported lower-than-expected quarterly sales, citing a delayed start to spring and continued interest-rate pressure on spending for big projects. Shares fell more than 1% to $337.25 in early trading. Through Monday, the stock was down slightly for 2024.
Home Depot stock has received a consensus rating of buy. The average rating score is A2 and is based on 73 buy ratings, 20 hold ratings, and 4 sell ratings.
Future Growth
Home Depot is forecast to grow earnings and revenue by 5.3% and 3.8% per annum respectively. EPS is expected to grow by 6.5% per annum. Return on equity is forecast to be 179.5% in 3 years.
Home Depot stock price stood at $353.42
According to the latest long-term forecast, Home Depot price will hit $450 by the end of 2026 and then $500 by the end of 2027. Home Depot will rise to $600 within the year of 2029, $700 in 2030, $800 in 2033 and $900 in 2035.
Fair pricing is all about knowing what guests are willing to pay, and adjusting your product, your offer and your pricing strategy so that it meets their expectations. This enables you to offer them a better guest experience than your competitors. One of the core objectives of revenue management is price optimisation.
A common way to determine fair value is to compare it with actual market transactions and prices associated with similar assets. This is called the market approach. There is also an income approach that considers the expected cash flows and earnings to derive the present fair value.
Fair value is the price an investor pays for a stock and may be considered the present value of the stock, when the stock's intrinsic value is considered and the stock's growth potential. The intrinsic value is calculated by dividing the value of the next year's dividend by the rate of return minus the growth rate.
In 2023, Home Depot's annual sales amounted to over 152 billion U.S. dollars, whereas its main competitor, Lowe's, reached more than 86 billion U.S. dollars of sales.
Who owns Home Depot?
Home Depot is mainly owned by institutional investors, who own around 70% of shares. The largest shareholders in December 2023 were: The Vanguard Group (9.49%) BlackRock (7.15%)
Home Depot also instituted a company-wide minimum wage of $15 per hour in February of 2023, while Lowe's does not offer a company-wide minimum wage, and jobs in the $13–$14 per hour range are not uncommon in some areas.
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| ServiceNow (NOW) | 1.49 | Strong Buy |
| Assurant (AIZ) | 1.50 | Strong Buy |
| Howmet Aerospace (HWM) | 1.50 | Strong Buy |
| Insulet (PODD) | 1.50 | Strong Buy |
One analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.01 to $15.30 per share. HD boasts an average earnings surprise of 2%. With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, HD should be on investors' short list.
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