The Home Depot, Inc. (NYSE:HD) Just Reported Second-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

It's been a good week for The Home Depot, Inc. (NYSE:HD) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.9% to US$356. Results were roughly in line with estimates, with revenues of US$43b and statutory earnings per share of US$4.60. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Home Depot

After the latest results, the 36 analysts covering Home Depot are now predicting revenues of US$156.9b in 2025. If met, this would reflect a reasonable 3.2% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be US$14.91, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$155.2b and earnings per share (EPS) of US$15.20 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$380. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Home Depot analyst has a price target of US$425 per share, while the most pessimistic values it at US$270. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Home Depot'shistorical trends, as the 6.4% annualised revenue growth to the end of 2025 is roughly in line with the 7.3% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 4.8% per year. So although Home Depot is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$380, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Home Depot going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Home Depot that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.