Home Depot (NYSE:HD) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Tuesday. The firm currently has a $205.00 price objective on the home improvement retailer’s stock. Zacks Investment Research‘s price target would suggest a potential upside of 7.17% from the stock’s previous close.

According to Zacks, “Home Depot’s five-year long trend of beating earnings estimates led it to outperform the industry in the past year. The company delivered bottom-line beat in third-quarter fiscal 2017, while sales topped estimates for the fifth straight quarter. Further, the company has been gaining from strength in core business and relentless focus on affording innovative products, along with interconnected customer experience and driving productivity. Steady housing market recovery and strong customer demand are also boosting the company’s performance. Further, it raised top and bottom-line guidance for fiscal 2017, based on the solid year-to-date performance and anticipated gains from hurricane recovery activities. While hurricane-related activities aided comps growth, gross margins on such sales were significantly below average. This led to a decline in gross margin, which is likely to continue in fiscal 2017. Of late, estimates have been stable.”

HD has been the topic of a number of other reports. Royal Bank of Canada set a $179.00 price target on shares of Home Depot and gave the stock a “buy” rating in a report on Monday, October 30th. Citigroup boosted their price target on shares of Home Depot from $179.00 to $188.00 and gave the stock a “buy” rating in a report on Thursday, November 16th. Credit Suisse Group boosted their price target on shares of Home Depot from $183.00 to $222.00 and gave the stock an “outperform” rating in a report on Wednesday, January 24th. Bank of America boosted their price target on shares of Home Depot from $170.00 to $190.00 and gave the stock a “buy” rating in a report on Wednesday, November 8th. Finally, KeyCorp began coverage on Home Depot in a research note on Tuesday, November 7th. They issued a “sector weight” rating on the stock. Two investment analysts have rated the stock with a sell rating, five have given a hold rating, twenty-three have issued a buy rating and one has issued a strong buy rating to the stock. The stock presently has a consensus rating of “Buy” and an average price target of $190.32.

Home Depot (NYSE HD) opened at $191.29 on Tuesday. The company has a quick ratio of 0.39, a current ratio of 1.23 and a debt-to-equity ratio of 9.54. The firm has a market cap of $223,380.00, a PE ratio of 26.53, a P/E/G ratio of 1.34 and a beta of 1.08. Home Depot has a fifty-two week low of $136.82 and a fifty-two week high of $207.60.

Home Depot (NYSE:HD) last issued its quarterly earnings results on Tuesday, November 14th. The home improvement retailer reported $1.84 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.81 by $0.03. The company had revenue of $25.03 billion for the quarter, compared to the consensus estimate of $24.53 billion. Home Depot had a net margin of 8.66% and a return on equity of 238.88%. The firm’s quarterly revenue was up 8.1% on a year-over-year basis. During the same period in the previous year, the firm earned $1.60 EPS. analysts predict that Home Depot will post 7.38 earnings per share for the current fiscal year.

Home Depot announced that its Board of Directors has initiated a stock buyback program on Wednesday, December 6th that permits the company to repurchase $15.00 billion in shares. This repurchase authorization permits the home improvement retailer to buy shares of its stock through open market purchases. Shares repurchase programs are usually an indication that the company’s board of directors believes its shares are undervalued.

In other Home Depot news, EVP Matt Carey sold 41,396 shares of the company’s stock in a transaction that occurred on Friday, December 8th. The stock was sold at an average price of $183.03, for a total value of $7,576,709.88. Following the completion of the sale, the executive vice president now owns 29,559 shares of the company’s stock, valued at $5,410,183.77. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.26% of the stock is owned by corporate insiders.

A number of institutional investors and hedge funds have recently modified their holdings of HD. Vanguard Group Inc. boosted its stake in shares of Home Depot by 0.9% during the second quarter. Vanguard Group Inc. now owns 80,417,310 shares of the home improvement retailer’s stock valued at $12,336,016,000 after purchasing an additional 703,292 shares during the period. Capital Research Global Investors boosted its stake in shares of Home Depot by 0.9% during the second quarter. Capital Research Global Investors now owns 20,025,701 shares of the home improvement retailer’s stock valued at $3,071,943,000 after purchasing an additional 170,139 shares during the period. Northern Trust Corp boosted its stake in shares of Home Depot by 1.3% during the second quarter. Northern Trust Corp now owns 17,333,833 shares of the home improvement retailer’s stock valued at $2,659,010,000 after purchasing an additional 222,958 shares during the period. Jennison Associates LLC boosted its stake in shares of Home Depot by 65.4% during the fourth quarter. Jennison Associates LLC now owns 8,227,834 shares of the home improvement retailer’s stock valued at $1,559,421,000 after purchasing an additional 3,254,382 shares during the period. Finally, Alliancebernstein L.P. boosted its stake in shares of Home Depot by 1.1% during the second quarter. Alliancebernstein L.P. now owns 8,027,935 shares of the home improvement retailer’s stock valued at $1,231,485,000 after purchasing an additional 84,750 shares during the period. 70.51% of the stock is owned by institutional investors and hedge funds.

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Home Depot Company Profile

The Home Depot, Inc (The Home Depot) is a home improvement retailer. The Company sells an assortment of building materials, home improvement products, and lawn and garden products, and provides various services. The Home Depot stores serves three primary customer groups: do-it-yourself (DIY) customers, do-it-for-me (DIFM) customers and professional customers.

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