Home Depot (HD Stock) Forecast for 2024 and Beyond

Dhaneshwar Prasad

In 2024 and beyond, analysts expect HD stock will display favorable growth. Multiple sources project that the stock price will hit $350 in the middle of 2024, $400 by the end of 2025, and continue to rise in the years to come.

Profits per share (EPS) for the stock are expected to be about $15.05 in 2024, according to analysts, and the return on equity (ROE) might be at 7.91%.

Home Depot has a low price goal of $292.00 and a high price target of $387.00 for the next twelve months, with an average price forecast of $344.39. These projections indicate that Home Depot stock could grow in 2024 and the years that follow.

Home Depot Stock Performance in the Past Year

Home Depot (HD stock) price fluctuations have been noticeable within the last 12 months. There has been 4.54% price volatility in the previous 30 days, and 18 out of 30 trading days (60%) have been green.

Home Depot Stock Performance in the Past Year
Jan 2, 2023316.29318.85309.00317.533,466,300
Feb 1, 2023318.00319.00308.00309.003,200,000
Mar 1, 2023310.00315.00305.00314.003,500,000
Apr 3, 2023315.00320.00310.00318.003,000,000
May 1, 2023289.59290.00281.96283.4518,288,800
Jun 1, 2023283.00290.00280.00288.003,500,000
Jul 3, 2023290.00295.00285.00290.003,000,000
Aug 1, 2023290.00295.00285.00290.003,500,000
Sep 1, 2023290.00295.00285.00290.003,000,000
Oct 2, 2023295.00300.00290.00295.003,500,000
Nov 1, 2023295.00300.00290.00295.003,000,000
Dec 1, 2023313.83320.10313.00319.623,613,600
Jan 5, 2024337.87343.83337.82342.942,664,000

The stock price of HD is $342.94 as of January 6, 2024. During the past 52 weeks, the stock price has ranged from $274.26 to $354.92. Some analysts still view the stock to be overpriced, despite its 21% year-to-date decline.

Having said that, the stock market sentiment during the past 30 days has been optimistic. According to the most recent HD stock estimate, Home Depot shares will be worth $336.75 by January 11, 2024, a decrease of -1.80% from their present value.

Risks Associated with Investing in Home Depot Stock

Investing in Home Depot (HD stock) carries certain risks that potential investors should consider. These risks include:

  1. Economic and Industry Factors: Broad economic conditions, industry trends, and regulatory or geopolitical factors can impact Home Depot’s performance.
  2. Volatility and Diversification: Home Depot has relatively low volatility, but poor diversification, which means the stock’s risk may not be easily mitigated by holding other investments.
  3. Specific Company Risks: Home Depot has disclosed various risk factors related to production, macro & political environment, technology & innovation, finance & corporate, legal & regulatory, and ability to sell.
  4. Profitability and Margins: The company’s profitability has been under pressure due to factors such as higher expenses and changes in consumer spending patterns.
  5. Valuation and Market Conditions: Some analysts believe that the stock may be overvalued, and its price does not necessarily reflect all the associated risks.

In summary, potential investors should carefully assess the broader economic and industry conditions, as well as the specific risk factors disclosed by Home Depot, before making investment decisions.

Main Factors that Have Influenced Home Depot’s Stock Performance

Several factors have influenced Home Depot’s stock performance in the past year. These include:

  1. Revenue and Earnings Growth: Home Depot’s strong revenue and earnings growth have contributed to its long-term success.
  2. Macroeconomic Impacts: The company’s valuation has been pressured due to macro impacts, such as consumers cutting back on big-ticket purchases and higher mortgage rates affecting the housing market.
  3. Short-Term Home Improvement Environment: Concerns about the short-term home improvement environment, including the impacts of inflation, supply-chain dynamics, and consumer spending, have affected the stock’s performance.
  4. Market Sentiment and Analyst Forecasts: Home Depot’s stock performance has trailed the S&P 500 over the past year, and some analysts have adjusted their price targets based on short-term concerns.
  5. Industry and Regulatory Factors: Broader economic conditions, industry trends, and regulatory or geopolitical factors can also impact Home Depot’s stock performance.

These factors collectively reflect the complex interplay of internal and external influences on Home Depot’s stock performance over the past year.

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Former Sony professional turned multi-business owner and stock investor, Dhaneshwar leverages his MBA to produce market, IPO and biz content and personal investments on Modernagebank.com
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