Auto Draft

The Home Depot, Inc. (NYSE:HD) is included among the 10 High Quality Stocks to Buy According to Hedge Funds.

DA Davidson and RBC Capital Markets Turn More Cautious on Home Depot (HD) after Earnings

On May 20, DA Davidson analyst Michael Baker lowered the firm’s price recommendation on The Home Depot, Inc. (NYSE:HD) to $377 from $445. It reiterated a Buy rating on the shares. The analyst noted that the stock turned slightly positive after its initial post-earnings decline. He said that may have been tied to commentary during the earnings call, suggesting that May trends improved after sales weakened in the second half of April, apparently due to weather conditions. Baker also said the recent rise in interest rates is likely to delay the timing of a broader macro recovery. That view was reflected in the firm’s reduced price target.

The same day, RBC Capital analyst Steven Shemesh lowered the firm’s price target on HD to $340 from $377 and kept a Sector Perform rating on the stock following its Q1 results. He said the company posted a modest Q1 earnings beat, though housing turnover remained stalled while the demand and cost outlook weakened. According to Shemesh, RBC continues to struggle to identify a catalyst that could push Home Depot’s results meaningfully higher.

The Home Depot, Inc. (NYSE:HD) is a home improvement retailer that sells home improvement products, building materials, lawn and garden products, decor items, and maintenance, repair, and operations products through its stores and online platform.

While we acknowledge the risk and potential of HD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HD and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Long Term Low Risk Stocks to Buy According to Hedge Funds and 11 Best Long Term US Stocks to Buy Right Now

Disclosure: None. Follow Insider Monkey on Google News.

1281292 - 11759070 - 1