Wedbush Has Pessimistic Outlook of Home Depot Q1 Earnings

The Home Depot, Inc. (NYSE:HD) – Equities research analysts at Wedbush reduced their Q1 2026 earnings estimates for shares of Home Depot in a research note issued to investors on Tuesday, February 25th. Wedbush analyst S. Basham now forecasts that the home improvement retailer will earn $3.44 per share for the quarter, down from their previous forecast of $3.56. Wedbush has a “Outperform” rating and a $440.00 price objective on the stock. The consensus estimate for Home Depot’s current full-year earnings is $15.13 per share. Wedbush also issued estimates for Home Depot’s Q2 2026 earnings at $4.50 EPS, Q3 2026 earnings at $3.81 EPS and FY2028 earnings at $17.69 EPS.

Home Depot (NYSE:HD) last posted its quarterly earnings data on Tuesday, February 25th. The home improvement retailer reported $3.13 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.04 by $0.09. The company had revenue of $39.70 billion during the quarter, compared to analyst estimates of $39.15 billion. Home Depot had a return on equity of 452.60% and a net margin of 9.45%. The firm’s quarterly revenue was up 14.1% on a year-over-year basis. During the same quarter last year, the company earned $2.82 earnings per share.

HD has been the topic of a number of other reports. Mizuho raised their target price on shares of Home Depot from $435.00 to $440.00 and gave the company an “outperform” rating in a research note on Wednesday, November 13th. HSBC raised shares of Home Depot from a “reduce” rating to a “hold” rating and lifted their price objective for the stock from $356.00 to $410.00 in a report on Wednesday. Piper Sandler reduced their target price on Home Depot from $455.00 to $435.00 and set an “overweight” rating on the stock in a research note on Wednesday. Wells Fargo & Company lifted their price target on Home Depot from $440.00 to $450.00 and gave the stock an “overweight” rating in a research note on Thursday, February 13th. Finally, Stifel Nicolaus upped their price objective on Home Depot from $375.00 to $400.00 and gave the stock a “hold” rating in a report on Monday, November 11th. Nine investment analysts have rated the stock with a hold rating and twenty-two have given a buy rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $436.50.

Home Depot Stock Performance

Shares of HD opened at $396.69 on Thursday. Home Depot has a 12-month low of $323.77 and a 12-month high of $439.37. The company has a current ratio of 1.13, a quick ratio of 0.31 and a debt-to-equity ratio of 8.65. The company has a market cap of $394.06 billion, a PE ratio of 26.95, a price-to-earnings-growth ratio of 4.03 and a beta of 1.05. The stock has a 50-day moving average price of $401.36 and a 200-day moving average price of $398.72.

Home Depot Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, March 27th. Investors of record on Thursday, March 13th will be paid a $2.30 dividend. This is a positive change from Home Depot’s previous quarterly dividend of $2.25. The ex-dividend date of this dividend is Thursday, March 13th. This represents a $9.20 dividend on an annualized basis and a yield of 2.32%. Home Depot’s dividend payout ratio (DPR) is presently 61.66%.

Institutional Trading of Home Depot

Several large investors have recently added to or reduced their stakes in the stock. K.J. Harrison & Partners Inc increased its position in shares of Home Depot by 65.2% during the fourth quarter. K.J. Harrison & Partners Inc now owns 9,100 shares of the home improvement retailer’s stock valued at $3,535,000 after buying an additional 3,590 shares during the period. Pensionfund Sabic boosted its position in Home Depot by 51.4% during the 4th quarter. Pensionfund Sabic now owns 11,200 shares of the home improvement retailer’s stock valued at $4,357,000 after acquiring an additional 3,800 shares in the last quarter. Swedbank AB grew its holdings in shares of Home Depot by 17.1% during the 3rd quarter. Swedbank AB now owns 909,530 shares of the home improvement retailer’s stock worth $368,542,000 after acquiring an additional 132,967 shares during the period. Wedmont Private Capital raised its position in shares of Home Depot by 12.5% in the 4th quarter. Wedmont Private Capital now owns 13,569 shares of the home improvement retailer’s stock worth $5,291,000 after acquiring an additional 1,506 shares in the last quarter. Finally, Johnson & White Wealth Management LLC purchased a new position in shares of Home Depot in the 4th quarter valued at approximately $1,793,000. Institutional investors own 70.86% of the company’s stock.

Home Depot Company Profile

The Home Depot, Inc operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also offers installation services for flooring, water heaters, bath, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, and windows.