Home Depot Posts Q3 Earnings Miss, But Accelerating Comp Sales Turns Analyst Bullish

Core Viewpoint - Home Depot's first-quarter results showed volatility, with mixed performance in comparable sales and earnings, leading to varied analyst ratings and price targets [1][2][4]. Analyst Insights - Stifel upgraded Home Depot's rating from Hold to Buy, raising the price target from $405 to$425, noting a modest headline miss with comparable sales down 0.3% and adjusted earnings of $3.56 per share, below the consensus of$3.59 per share [2]. - Guggenheim Securities reaffirmed a Buy rating with a price target of $450, highlighting a meaningful acceleration in comparable sales trends from 1.3$399, reporting total company comparable sales down 3.6% in February, up 0.6% in March, and up 1.1% in April [6]. Sales Performance - Home Depot's comparable sales accelerated through the quarter, with U.S. comparable sales up nearly 2.5% in April, excluding Easter [3]. - Big ticket transactions (over $1,000) rose for the second consecutive quarter, indicating reduced risk of negative comparable sales in 2025 [5]. - Management indicated that U.S. comparable sales would have been closer to +2.5% in April, adjusting for the Easter timing shift [7]. International Strategy - Home Depot plans to diversify its international sourcing strategy, ensuring that no single country outside the U.S. represents more than 10% of purchases over the next 12 months [7].