+ Watch HD
on My Watchlist
A mecca for the do-it-yourselfer, Home Depot is the world’s largest home-improvement retailer.
Kate McShane target $133
Great company, awful price. Even if we graciously say that we're midway through an economic cycle, 25x free cash flow for a mature retailer is simply too much.
DIY business booming with self home renovations taking off rather than relocating.
As the housing market recovers you will see more home construction which will benefit Home Depot. Lead by solid executive management, I see Home Depot as a long-term winner.
experiment beginning 11-14
Housing sector is topping out.
These ratios are high: P/E, P/S AND P/B
Home depot is a leader within its industry with only one sole "main" competitor (Lowes). It is considered to be the world's largest home improvement store (as of fiscal year ended 2/2/14).The company offers a comprehensive mix of products tailored to customers looking to do work for themselves all the way to individual contractors. Although HD faces competition from similar retailers within the different segments that it serves; it is still considered a "one stop shop" and this is part of its competitive advantage. Its brand is also paramount.HD has been placing strong emphasis on customer service by rolling out different programs to facilitate the purchase of products and ensure prompt services via "BOPIS", "BOSS" and the soon to be introduced "BODFS". As per Euromotor international; the company has a market share of 18.7% in the industry in comparison to 15.2% for lowes. The number is said to continue increasing ahead of Lowes.Current dividend yield is at: 2.40% which is also a nice bonus.
Dividends500 tracks the 200 strongest dividends in the S&P 500. To qualify as a strong dividend, the company must meet two simple requirements:- A payout ratio below 50%- An increasing dividend from the prior yearBecause there are more than 200 dividend paying companies in the S&P 500 that meet these requirements, the qualifying companies with the largest dividend yields were chosen. Dividends500 intends to test this FactSet article, which highlights these strong dividend paying companies and their outperformance versus the S&P 500 as a whole (Page 12).http://www.factset.com/websitefiles/PDFs/dividend/dividend_12.16.13If you have questions or see something you think is inaccurate feel free to let me know.
HD is levels above Lowes.
Next temporary housing boom is underway and they will ride the wave.
HD is benefiting from improving housing starts which will have to increase to meet demand and the backlog of the last 5 years. People will always improve their homes to get more efficient fixtures, appliances and other items. New windows, doors and insulation help improve a home. Outdated or worn out items create a constant need which has been bottled up over the last few years. Partnering with Solar City is another excellent move as alternative energy offers reduced costs over time, again people will improve their home to take advantage of long term energy savings and increase home value. Dividends rule!
This will be an interesting pick. I may be totally wrong here, but I would think Home Depot will do very well in the coming years, due to high demand for new furniture, supplies, etc.
It will outperform as long as the housing market continues to improve. If the interest rates raise considerable it will drop.
Here we go...Residential market is finally on the rebound, HD will ride this wave
slow but steady improve in the economy will improve this companies value and the weather created problems will create unfortunate but large sales.
Changing My Caps to Reflect my investing strategy. I start with a simple screener trying to find undervalued dividend paying stocks. Then because I want to invest in things I understand I eliminate any businesses I have not heard of or in areas I lack knowledge ( Financials, Precious Metals). After that I check the Caps Rating and it gets a thumbs up if it is rated 4 stars or higher. Very few 3 star companies will get a thumbs up but occasionally i will go out on a limb with one like this one.
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ratings and Key Statistics provided by Zacks.
SEC Filings and Insider Transactions provided by Edgar Online.
Powered and implemented by Interactive Data Managed Solutions. Terms & Conditions