Home Depot Is Positioned For Decent Performance


  • Home Depot enjoyed unsustainable growth resulting from the pandemic and high lumber costs.
  • The current outlook is reasonable, but earnings are expected to drop.
  • Even after the post-earnings drop, the shares are not cheap.
  • The Wall Street consensus rating is a buy, with a consensus price target that maps to a total return of 14.4% over the next year.
  • The market-implied outlook continues to be modestly bullish, with moderate volatility.
Home Depot location with American flag. Home Depot is the largest home improvement retailer in the US.


Home Depot (NYSE:HD) reported Q4 results before the market opened on Feb. 21, 2023, beating expectations on earnings, but slightly short on revenue. The forward guidance for 2023 was cautious, and indicated a slight decline in diluted EPS for the year. The shares dropped 7.1% for

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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