Why should I invest in Home Depot? (2024)

Why should I invest in Home Depot?

Cash flow and profit margins remain strong and reflect Home Depot's premium position in its competitive industry. The chain converted 14.2% of sales into operating income this past year, which was slightly below its pandemic peak of about 15% of sales.

Is Home Depot a good investment right now?

Home Depot's analyst rating consensus is a Moderate Buy. This is based on the ratings of 27 Wall Streets Analysts.

Why is Home Depot so valuable?

We surmise Home Depot's strong brand equity and extensive scale should enable incremental share gains in the highly fragmented $950 billion North American home improvement market, on top of the high-teens market share it has amassed thus far (given roughly $157 billion in sales in 2022).

What makes Home Depot so successful?

The Home Depot's success can be attributed to strategic acquisitions and a concentrated effort to grow into one category. As the e-commerce business has grown, The Home Depot has strategized and acquired companies that have helped them to grow in this segment as well.

Why would a stock be a good investment?

Owning stocks in different companies can help you build your savings, protect your money from inflation and taxes, and maximize income from your investments. It's important to know that there are risks when investing in the stock market.

Does Home Depot have a future?

Thanks to its stellar lineup of products and services tailored for every project, Home Depot and its market seem ripe for delivering more. Statista research predicts the U.S. home improvement scene will balloon to a jaw-dropping $621 billion by 2025, jumping from $457 billion in 2020.

Why is Home Depot stock growing?

Home Depot Has a Growing Dividend

Over the years, the company has showcased its ability to operate at scale while investing in the supply chain and expanding omnichannel capabilities, driving earnings and dividends higher.

Is Home Depot stock a good long term investment?

Home Depot (NYSE: HD) has historically been a wildly successful investment. Shares have produced a total return, including dividends, of 6,680% in the last 30 years. This gain crushes the broader S&P 500 index.

How profitable is Home Depot?

Net earnings for the first quarter of fiscal 2023 were $3.9 billion, or $3.82 per diluted share, compared with net earnings of $4.2 billion, or $4.09 per diluted share, in the same period of fiscal 2022.

Is Home Depot in trouble financially?

Home Depot has revealed that its sales have taken a hit during the fourth quarter of 2023. It earned $34.8 billion in sales which is a 2.9% decrease from the same quarter in 2022. Also, in the U.S. specifically, comparable sales decreased by 4%.

What is Home Depot famous for?

Today, The Home Depot is the world's largest home improvement retailer with approximately 475,000 orange-blooded associates and more than 2,300 stores in the U.S., Canada and Mexico.

What is the one Home Depot investment strategy?

The Home Depot Inc.

The company is on track with the execution of the “One Home Depot” investment plan, which focuses on expanding supply-chain facilities, technology investments and enhancing the digital experience.

Is Home Depot a profitable company?

Net earnings for fiscal 2023 were $15.1 billion, or $15.11 per diluted share, compared with net earnings of $17.1 billion, or $16.69 per diluted share in fiscal 2022. For fiscal 2023, diluted earnings per share decreased 9.5% versus last year.

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Is Home Depot growing?

Home Depot's sales declined by 3% in the last fiscal year as customers took on fewer projects after the pandemic. The company said it expects total sales to grow about 1% this fiscal year, including the lift from an additional week.

How fast is Home Depot growing?

Home Depot predicts fiscal 2024 sales growth of about 1%, including the 53rd week. It anticipates same-store sales will be down about 1% for the 52-week period.

What is going on with Home Depot?

Home Depot warns of weak 2023 profit as rising prices hurt demand. Demand for home improvement tools such as paint and flooring is now cooling as consumers cut back spending, setting the company up for a challenging 2023.

Who owns most of Home Depot stock?

Largest shareholders include Vanguard Group Inc, BlackRock Inc., State Street Corp, Capital World Investors, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, VFINX - Vanguard 500 Index Fund Investor Shares, Geode Capital Management, Llc, Morgan Stanley, Capital Research Global Investors, and Bank Of ...

Why is Home Depot stock dropping?

Shares of Home Depot (NYSE: HD) finished lower today as investors seemed to give a thumbs-down to its deal to buy SRS Distribution, a leading specialty-trade company that will help it expand its presence in the pro market. The stock closed down 4.1%.

Why Home Depot stock went down?

The hot inflation report weighed on the home improvement retailer. Shares of Home Depot (HD -0.45%) were moving lower today as the home improvement retailer responded to the hotter-than-expected inflation report this morning.

What is the 10 year return on Home Depot stock?

Ten Year Stock Price Total Return for Home Depot is calculated as follows: Last Close Price [ 362.05 ] / Adj Prior Close Price [ 60.24 ] (-) 1 (=) Total Return [ 501.0% ] Prior price dividend adjustment factor is 0.79.

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