Home Depot (HD) Set for Earnings Growth Amid Strong Home Renovation Demand

Home Depot's earnings estimates for 2026 and 2027 have been raised by Jefferies, projecting solid gains from increased home equity withdrawals. The stock's price target has adjusted to $460, forecasting mid to low double-digit sales growth. Analysts provide a positive outlook with an average price target suggesting a substantial upside from current levels.

Home Depot, Inc. (NYSE:HD) has seen a significant boost in its earnings estimates for the years 2026 and 2027, according to recent projections by Jefferies. The financial services firm has raised its estimates, projecting solid gains driven by increased home equity withdrawals. This positive outlook has also led to an adjustment in the stock's price target, which has been set at $460. This projection suggests mid to low double-digit sales growth, offering a substantial upside from current levels.

Analysts at Jefferies have provided a positive outlook, with their average price target suggesting a significant potential for growth. The firm's latest report highlights the company's robust performance and the positive impact of its digital strategy on overall sales. Home Depot's e-commerce gains have been transformative, moving beyond incremental growth and playing a pivotal role in the company's success [2].

The company's digital investments, including mobile upgrades and real-time inventory visibility, have optimized the customer journey, particularly for Pro customers and large DIY projects. These enhancements have been critical in driving improvements in order accuracy and responsiveness, enriching the customer experience and fostering deep loyalty [2].

Home Depot's competition in the e-commerce space includes Lowe's Companies, Inc. (LOW) and Amazon.com, Inc. (AMZN). While these companies are strong competitors, Home Depot's strategic focus on an interconnected retail experience through seamless integration of physical stores and digital platforms sets it apart. The company's ongoing investments in its direct fulfillment center network and inventory optimization are expected to continue driving growth and enhancing its competitive position [2].

Institutional investors have shown strong confidence in Home Depot, with a significant portion of the stock owned by institutional investors. This includes large investors such as Graybill Wealth Management LTD., which recently purchased a new position in the company's stock [1]. The company's solid financial performance and strategic initiatives have attracted substantial investment, reflecting its strong fundamentals and growth prospects.

In conclusion, Home Depot's earnings estimates for 2026 and 2027, as projected by Jefferies, indicate a positive outlook with substantial growth potential. The company's digital strategy and strategic investments in e-commerce and fulfillment are expected to continue driving its success. Investors and financial professionals should closely monitor the company's progress and consider the implications of these projections on the stock's valuation.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-graybill-wealth-management-ltd-invests-119-million-in-the-home-depot-inc-nysehd-2025-07-14/
[2] https://www.nasdaq.com/articles/e-commerce-gains-home-depot-incremental-or-game-changing