Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Home Depot (HD) reachead $395.14 at the closing of the latest trading day, reflecting a -0.25% change compared to its last close.
If you've ever tackled a home improvement project, chances are that Home Depot (HD 0.94%) was one of the first brands to come to mind. The company is a giant in the home improvement industry, operating 2,345 stores, as of its latest fiscal third quarter.
Recently, Zacks.com users have been paying close attention to Home Depot (HD). This makes it worthwhile to examine what the stock has in store.
In this video, Motley Fool contributor Jason Hall discussed Home Depot's (HD 1.97%) business opportunity, risks, and shares his prediction on its performance over the next five years.
Investors can appreciate that putting money to work in the stock market and having a very long-term mindset can end up resulting in truly remarkable results. This makes investing something I believe all people should at least learn the basics of.
Having cash regularly deposited in your account from dividend stocks is a great feeling. It not only helps ease the sting of market volatility, but it can also help you build up a nice stream of income when you really need it in retirement.
Home Depot's stock has recently underperformed the S&P 500. Its slower growth offers stability but lacks upside, with a 5-year EV CAGR forecast of -0.22%. The Buffett Indicator (208% of GDP) signals market-wide overvaluation. HD's intrinsic EV is ~40% below its current level, showing a -62% margin of safety. Strong management ethos and investments in the Pro Ecosystem (45% of sales) ensure long-term stability. However, current valuations suggest Sell for prudent investors.
Home Depot (HD 0.62%) and Lowe's (LOW -0.42%) are the two largest home improvement retailers in America. Both of their stocks slumped in 2022 and 2023 as inflation curbed consumer discretionary spending and rising interest rates chilled the housing market, but they both have rallied by about 20% so far this year as the macro environment has stabilized.
Home Depot (HD 0.62%) stock has delivered a dividend-adjusted total return of roughly 25% this year. While that's certainly nothing to sneeze at, the performance has actually lagged behind the S&P 500 index's total return level of 29%.
Investing in dividend stocks can be very comforting. The passive income you receive might not add up to a big sum at first.
The Home Depot Inc. HD stock has gained 19.5% in the past six months, marking an underperformance from the broader industry's 20.5% rise and the Retail-Wholesale sector's growth of 22%. However, it outperformed the S&P 500's rally of 12.4%.