#2 - Home Depot (NYSE:HD)
Some may argue that the housing market is in a bubble. But if your sentiment towards Home Depot (NYSE:HD) is based on a belief that home building may slow down, you’re not seeing the whole picture.
Certainly, the home improvement giant is benefiting from strength on its commercial side. Contractors and builders were sidelined to an extent by Covid-19 restrictions. And now that they are back in business, there is some thought that the market for new construction and remodeling may slow down as lumber costs remain high.
But the pandemic showed that the American consumer finds a way. Whether it’s using laminate flooring or simply applying a fresh coat of paint, they’ll figure out cost-effective alternative to renovate their homes. And with its now proven omnichannel model, Home Depot is helping them get there.
If you need a less abstract case, consider the company’s recent earnings report in which it beat estimates on top and bottom lines for the fourth straight quarter. And you don’t have to drill down to see that they not only beat expectations, they crushed them. I expect more of the same this summer.
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
- $339.00
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 18 Buy Ratings, 7 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $375.96 (10.9% Upside)
