Under the gloomy clouds of the US housing market, Home Depot, Inc. has shown resilience, and Wall Street analysts still hold an optimistic view.

American home improvement retail giant Home Depot, Inc. (HD.US) released a mixed earnings report, with Q1 revenue and adjusted profit exceeding market expectations, but same-store sales, a key indicator, underperforming. Home Depot, Inc. also reaffirmed its performance guidance for the 2026 fiscal year. Following the release of the earnings report, Wall Street analysts remain optimistic about the future of Home Depot, Inc. Morgan Stanley maintains its "overweight" rating for Home Depot, Inc., with a target price of $420. Morgan Stanley analyst Simon Gutman stated that the bank still views Home Depot, Inc. as a quality non-essential consumer investment with a favorable risk-return ratio. He pointed out that the current stock price of Home Depot, Inc. has not yet reflected expectations of a recovery in the US housing market and the market seems to be waiting for signs of improvement before positioning themselves. He emphasized, "Market expectations have already hit rock bottom, and the first quarter performance in 2026 has not changed our positive outlook on the company's annual earnings per share. Therefore, once signs of recovery in the home improvement market emerge, the company's stock price will receive favorable support." Despite significant obstacles such as the housing market lock-in effect and high interest rates, the demand for housing maintenance and repair, combined with the demand from approximately 4 million existing homes that change hands each year, is enough to boost the company's stock price. Jefferies Financial Group Inc. maintains a "buy" rating for Home Depot, Inc., with a target price of $454. Jefferies Financial Group Inc. analyst Jonathan Machowski stated that the core highlight of this earnings report is that despite low consumer confidence and continued pressures on housing purchase costs, Home Depot, Inc.'s first quarter fundamentals demand remains on par with the same period in 2025. Wells Fargo & Company still maintains an "overweight" rating for Home Depot, Inc., but has lowered the target price from $375 to $360. Wells Fargo & Company analyst Zachary Baden stated that in the context of the market focusing on factors such as interest rates and oil prices, and with macroeconomic and segment risk still present, Home Depot, Inc. management maintaining its 2026 fiscal year performance guidance unchanged has sent a positive signal. Data from Tipranks shows that overall, Wall Street analysts still have a positive outlook on Home Depot, Inc., with a consensus rating of "strong buy" and an average target price of $389.63, representing a 29% upside potential from the current stock price. As of the close of trading on Tuesday, Home Depot, Inc. rose 0.88% to $302.44. The stock has fallen nearly 12% year-to-date.