Home Depot's Q2 Results Preview Boosts Truist's Buy Rating, Raises Price Target to $433

Home Depot's (HD) second-quarter earnings preview is expected to be solid, according to Truist Financial analysts. The analysts maintained their Buy rating and increased the price target to $433 per share. However, shares of HD slipped fractionally in trading. Despite this, analysts have a Strong Buy consensus rating with an average price target of $429.53 per share, implying 8.3% upside potential.

Home Depot Inc. (NYSE: HD) is set to announce its second-quarter fiscal 2025 earnings results on August 19, 2025, with analysts expecting a solid performance. Truist Financial analysts have maintained their Buy rating and increased the price target to $433 per share. Despite this positive outlook, shares of HD slipped fractionally in trading.

Analysts predict Home Depot to report earnings per share (EPS) of $4.73, a 1.2% year-over-year (YoY) increase, and revenues of $45.5 billion, up 6% from the same period last year [1]. The stock has surged 13% over the past year, driven by a rebound in same-store sales and strategic moves. The consensus rating is a Moderate Buy, with an average price target of $429.53 per share, implying an 8.3% upside potential.

The company's strong performance can be attributed to the rebound in consumer spending on home improvement products and strategic initiatives such as expanding its e-commerce platform and enhancing its supply chain. The stock's recent performance has been bolstered by positive analyst ratings and target price revisions. However, investors should keep an eye on the actual earnings report to gauge how the company's performance compares to expectations.

Home Depot has faced challenges such as softened demand and pressure in high-ticket discretionary categories, factors that have impacted both total and comparable sales. Macroeconomic pressures, including elevated interest rates, continue to influence consumer behavior and financing expenses. The company anticipates continued pressure on big-ticket renovations, such as kitchen and bath remodels, in the near term.

Despite these challenges, Home Depot's interconnected retail model and strong tech infrastructure have driven web traffic and supported the buildout of a scalable Pro ecosystem, solidifying its competitive advantage. The company's "One Home Depot" plan, focusing on supply-chain expansion, technology investments, and digital enhancements, remains a key growth driver.

Investors are closely watching whether Home Depot can deliver on expectations. Its strong market position, strategic initiatives under the "One Home Depot" plan, and steady growth in Pro customers remain encouraging, but potential risks cannot be overlooked. Balancing these strengths against near-term uncertainties will help investors make a more informed decision.

In conclusion, Home Depot's second-quarter earnings report will be closely watched by investors and financial professionals. The company's strong performance and strategic moves have positioned it as a favorite among analysts. However, the actual earnings results will be crucial in determining the stock's near-term trajectory.

References:
[1] https://www.ainvest.com/news/home-depot-q2-earnings-boost-stock-price-2508/
[2] https://finance.yahoo.com/news/home-depot-nears-q2-earnings-141200230.html