Home Depot Inc (NYSE:HD) shares are trading higher Thursday. Investors are digesting fresh Wall Street target cuts heading into next week's earnings window. Here’s what you need to know.
- Home Depot stock is trading near recent lows. What should traders watch with HD?
Analysts Trim HD Targets
With first-quarter results due before the opening bell on May 19 and consensus at $3.41 EPS on $41.54 billion in revenue, investors are assessing positioning ahead of earnings.
On one hand, shares are down about 11.5% year-to-date heading into the print, so any upside surprises could help drive shares higher. On the other hand, multiple analysts lowered price targets on the stock before the report.
Bernstein analyst Zhihan Ma reiterated a Market Perform rating on Home Depot on Thursday while lowering the price target to $365, adding to a cluster of recent downward revisions. Wells Fargo's Zachary Fadem kept his Overweight rating on Home Depot, but cut his price target to $375 from $420.
Macro-sensitive demand is also in focus. The 30-year fixed mortgage rate is 6.37%, yet purchase mortgage applications jumped 4% week-over-week and are running 7% higher year-over-year, a setup that can support DIY and pro demand if turnover holds. That housing read-through matters for Home Depot because higher transaction and remodel activity tends to flow into big-ticket categories, even when rates stay elevated, as buyers are returning to the market.
With markets broadly green and breadth positive, the stock's modest gain reads more like "holding in" with the tape than a decisive reversal attempt.
Home Depot Battles Bearish Technicals
The bigger picture is still bearish. Home Depot is down 18.3% over the past 12 months and is trading below every major moving average, including 7% below the 20-day SMA of $327.46 and 17.4% below the 200-day SMA of $368.55. That "stack" of overhead averages often turns rallies into sellable bounces until price can reclaim at least the short-term band.
Momentum also leans defensive: MACD is below its signal line and the histogram is negative, which points to upside pressure fading versus the prior upswing. When MACD sits under its signal line, it usually means buyers are losing control unless a new push flips that relationship back.
The longer-term trend damage is reinforced by the death cross that printed in December 2025, and the stock is still sitting close to its 52-week low zone after a swing low in May. With the 52-week range spanning $299.27 to $426.75, bulls typically want to see a higher low form and then a reclaim of nearby moving averages before calling it more than a bounce.
- Key Resistance: $353.50 — a nearby level where rebounds can stall, lining up with the broader overhead-supply area near the 100-day SMA
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $409.55, with targets ranging from $348.00 to $454.00. Recent analyst moves include:
- Wells Fargo: Overweight (Lowers Target to $375.00) (May 14)
- Bernstein: Market Perform (Lowers Target to $365.00) (May 14)
- Truist Securities: Buy (Lowers Target to $394.00) (May 13)
Benzinga Edge Rankings: The Benzinga Edge scorecard for Home Depot highlights its strengths and weaknesses compared to the broader market.
- Momentum: Weak (Score: 9.8) — The stock's trend profile is still lagging, consistent with price sitting below key moving averages.
- Value: Neutral (Score: 31.8) — Valuation reads closer to the middle of the pack rather than a clear bargain signal.
- Growth: Weak (Score: 26.06) — The score implies the market isn't pricing HD as a near-term growth leader right now.
The Verdict: Home Depot’s Benzinga Edge signal reveals a weak momentum setup with below-average growth characteristics, which fits a stock still trying to base after a prolonged slide. For longer-term bulls, the cleaner setup is usually a reclaim of key moving averages; for bears, failed rallies into resistance remain the higher-probability pattern until that changes.
HD Shares Are Rising
HD Price Action: Home Depot shares were up 0.52% at $304.11 at the time of publication on Thursday. The stock is near its 52-week low of $299.27, according to Benzinga Pro.
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