#2 - Home Depot (NYSE:HD)
Home Depot (NYSE: HD) has delivered a total return of 1,500% to investors over the last 20 years. That’s evidence of the company’s positioning in the critical home improvement market. Home Depot and Lowe’s Companies Inc. (NYSE: LOW) are the two largest names in the space and benefit from economies of scale.
The stock is up about 4.5% in 2024 largely due to earnings that reflect the weakness in the housing market which is at the core of the company’s business. But this continues to be a company well-positioned to rebound when the housing market recovers — as it is expected to do when interest rates move lower.
At 24x forward earnings, HD stock is slightly above the sector average. However, an increase in demand could send earnings much higher. That would raise analysts' targets, which currently show just a 5.4% upside. Plus, investors collect a dividend with a yield of 2.45% while they hold the stock.
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
- $429.51
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 23 Buy Ratings, 6 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $426.00 (0.8% Downside)
