Bernstein analyst Zhihan Ma has maintained their neutral stance on HD stock, giving a Hold rating yesterday.
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Zhihan Ma has given his Hold rating due to a combination of factors impacting Home Depot’s current and future performance. The company’s recent quarterly results showed a slight miss in comparable sales and earnings per share, which were below market expectations. Despite this, Home Depot maintained its full-year guidance, suggesting a stable outlook but not an overly optimistic one.
Additionally, while the broader market sentiment towards home improvement is improving due to potential interest rate cuts, there are concerns that these may not lead to a significant demand rebound in the near term. Home Depot is currently in an investment phase, focusing on complex professional assets, which could affect its margins and returns. In contrast, its competitor Lowe’s is seen as more favorably positioned to benefit from a market recovery. Therefore, the Hold rating reflects a cautious stance, balancing potential long-term gains against short-term uncertainties.
Ma covers the Consumer Defensive sector, focusing on stocks such as Target, Costco, and Dollar General. According to TipRanks, Ma has an average return of 10.1% and a 68.18% success rate on recommended stocks.
In another report released yesterday, Gordon Haskett Capital Corporation also maintained a Hold rating on the stock with a $400.00 price target.