Truist Securities has raised its price target on Home Depot stock to $424 from $405 and kept a Buy rating on the shares. The shares are trading at $384, implying a market capitalization of $383.6 billion and a price-to-earnings ratio of 26.25.
The upgrade follows what Truist described as a solid fourth quarter for the home improvement retailer, supported by a modest uptick in January sales. Home Depot reported positive U.S. comparable-store sales across calendar year 2025, despite the lack of storm activity and tougher comparisons in the back half of the year.
Over the last twelve months the company generated $166.19 billion in revenue and reported diluted earnings per share of $14.66. Those trailing figures form part of Truist's assessment of the company's near-term valuation and prospects.
Home Depot's calendar year 2026 guidance signals improvements are expected as the year progresses. Management projects a mid-single-digit decline in earnings per share for the first quarter, a short-term contraction Truist attributes to gross margin and expense timing pressures. The company expects sequential improvement beyond the first quarter.
In presenting its outlook, Truist highlighted several contextual factors that underpin its positive stance. The firm pointed to easing housing affordability headwinds and the ongoing aging of U.S. housing stock as structural drivers for repair and maintenance demand. Truist also referenced the potential for housing stimulation concepts from the Trump administration as an additional supportive factor. Based on these elements, the analyst team said it remains buyers of Home Depot shares.
Separately, Home Depot reported fourth-quarter 2025 results that exceeded consensus estimates. The company posted adjusted earnings per share of $2.72, ahead of the forecasted $2.54. Quarterly revenue totaled $38.2 billion, slightly above the anticipated $38.14 billion. Those results were presented as a positive performance amid a challenging retail backdrop.
The earnings release and revenue beat were framed as evidence of Home Depot's operational execution under pressure. Although the company's stock price increased following the earnings announcement, coverage here concentrates on the underlying financial metrics rather than the intraday market reaction. The available information did not include detailed analyst commentary on the quarter.
Taken together, the price-target adjustment, the quarter's outperformance and the 2026 guidance present a picture of a large home-improvement retailer navigating a mixed macro and retail environment while forecasting gradual improvement through the coming year. Investors and market participants have the company's reported metrics - trailing revenue of $166.19 billion, diluted EPS of $14.66, and the latest quarter's adjusted EPS of $2.72 on $38.2 billion in revenue - as reference points when assessing valuation and near-term trajectory.