CNBC Analysts Upgrade Home Depot to Buy, Raise Target to $370 After Q2 Beat

3 articles · Updated · CNBC · Aug 18

$47.86 billion in second-quarter revenue and $4.92 EPS beat expectations, prompting CNBC Investing Club analysts to upgrade Home Depot to buy and lift their price target to $370 from $360.
1.7% same-store sales growth nearly doubled estimates, with momentum building from May through July as a 2.8% higher average ticket offset a 1% drop in transactions.
Home Depot still described housing as frozen, but Pro customers outperformed DIY, digital sales rose 11%, and U.S. delivery lead times have fallen about 45% over 18 months.
$685 million in tariff refunds helped second-quarter margins, though management said the benefit will mostly offset rising costs rather than materially boost full-year results.
2026 guidance was reaffirmed, with sales growth of 2.5% to 4.5%, while analysts said lower bond yields and mortgage rates remain the key catalyst for a broader housing-driven rebound.