Home Depot Analysts See Big Turnaround Potential
Home Depot's (NYSE:HD) turnaround may be bigger than investors expect, according to analysts. The company has stabilized after a rough year, and its proprietary model sees a setup for a real re-rating higher.
The analyst who calls NVIDIA in 2010 just named his top 10 AI stocks, but Home Depot didn't make the cut. However, our 24/7 Wall St. price target for Home Depot is $385.03, implying 14.4% upside from the current price of $335.90.
Q2 fiscal 2026 marked a clear turnaround signal, with revenue growing 5.71% to $47.86 billion and adjusted diluted EPS reaching $4.92. Comparable sales turned positive 1.7%, exceeding management's expectations.
The bull case for Home Depot rests on operational leverage meeting a housing thaw. SRS Distribution comped above the company average, with 90% of stores closed an SRS sale in the past 12 months. Management targets $400 million in system-wide cross-selling this year.