Zacks.com users have recently been watching Home Depot (HD) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
The S&P 500 is up 56% since the end of 2022. The bull market could deliver several more years of great returns, but history shows us the market will have ups and downs.
Lowe's NYSE: LOW and Home Depot NYSE: HD are the two consumer cyclical home improvement giants enjoying strong momentum as the year-end approaches. Both stocks have nearly identical year-to-date performances and are breaking out of bullish consolidations.
Over the past several decades, Home Depot (HD -0.02%) has grown into one of the world's largest retailers while generating life-changing investment returns for shareholders. Home Depot stock has turned a one-time $100 investment at its IPO into more than $3.6 million today.
Lowe's (NYSE: LOW), a home-improvement retailer, fell 4.6% on Tuesday, 19th November (to $259), as compared to a 0.4% growth in the S&P 500 index. In comparison, LOW's peer Home Depot stock (NYSE: HD) saw its stock down 0.9% to around $407 on the same day.
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Home Depot (HD) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
HD's Q3 results reflect continued gains from the Pro category, SRS contributions and incremental hurricane-related sales. A robust outlook drives its momentum.
It only has a tiny fraction of this massive market but just took a very big step to take more share.
Home Depot's Q3 performance exceeded expectations, driven by hurricane-related sales and the integration of SRS Distribution, leading to an upward revision of FY24 guidance. Despite positive Q3 results, high interest rates and elevated mortgage rates continue to defer larger remodeling projects, posing a significant headwind for Home Depot's growth. The SRS acquisition appears promising, contributing significantly to sales and aligning with Home Depot's strategy to emphasize the Pro segment, though its full impact will take time.
The company looks well positioned to rebound next year.
Home Depot CEO Ted Decker joins CNBC's 'Squawk Box' to discuss the company's most recent earnings, raised outlook, and more.