Home Depot expects growth in 2024 and 2025 based on consumer trends and acquisitions.
From Nasdaq: 2024-11-12 09:48:00
- Home Depot (NYSE: HD) is expected to benefit from consumer trends, acquisitions, and outperforming in 2024. The company is anticipating tailwinds in 2025 due to favorable policies and a pro-business environment, particularly in the housing market.
- Despite a decline in Q3 comp sales, Home Depot’s net revenue increased by 6.6% to $40.2 billion, largely due to the acquisition of SRS. Margin contraction was less than expected, leading to a 13.8% adjusted operating margin and an increase in income growth.
- The SRS acquisition has increased Home Depot’s debt and leverage temporarily, but the company’s strong cash flow and balance sheet can handle it. Shareholder equity is up 300%, and the company’s capital return program, including dividends and buybacks, is expected to continue in 2025.
- Analysts are optimistic about Home Depot’s future, with a consensus target price near $466, suggesting a move towards all-time highs. Improved sentiment, price expectations, and coverage are driving the stock towards new highs, with a potential move to $466 once critical resistance is broken.
Read more at Nasdaq:: Home Depot Stock: Targeting 12% in 2024 and 25% More in 2025