7 Retail Stocks That Defied The Pandemic - 2 of 7

#2 - Home Depot (NYSE:HD)

Home Depot (NYSE:HD)

Home Depot and its closest competitor, Lowes, benefit from location location location. When the pandemic struck, and folks were shut away at home, neither of these stores missed a beat. In fact, comps at Home Depot shot surged more than 25% on demand for goods in all categories.

It was, in fact, the Home Depot report that tipped us off to what we believe will drive economic activity over the next several quarters. Inventories are falling. Home Depot reported an 8.4% decrease in its inventory, and that figure is low. Other retailers are reporting much larger declines. Regardless, a decline in inventory is good for Home Depot’s bottom line.

When it comes to dividends, Home Depot is our favorite of the group. The stock pays a little more than 2.0% and has a history of aggressive distribution increases. With a low 52% payout ratio and 25% CAGR the next dividend increase, the 12th consecutive, could be a big one.

About Home Depot

The Home Depot, Inc operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also offers installation services for flooring, water heaters, bath, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, and windows. Read More 

Current Price

$336.57

Consensus Rating

Moderate Buy

Ratings Breakdown

18 Buy Ratings, 7 Hold Ratings, 1 Sell Ratings.

Consensus Price Target

$375.96 (11.7% Upside)