Could Home Depot Stock Reach $400 in 2023?
Investing in stocks over the long term is a proven strategy for gaining sizable wealth. But predicting short-term price movements, which many people love to try, is inherently difficult to do with any level of accuracy. So it's extremely valuable for investors to run through various scenarios to understand how their businesses could perform in different situations.
So is it possible that Home Depot's (NYSE: HD) stock, at about $318 per share as of this writing, could reach $400 in 2023? Let's see how likely this 26% gain really is given the circumstances.
Home Depot now trades at a price-to-earnings (P/E) ratio of 19, which is meaningfully lower than what the stock has sold for over the past decade. If we simply assume this P/E remains constant over the next 12 months, then the business must increase diluted earnings per share (EPS) by 26% in order for the share price to hit our $400 target.
Source Fool.com
