Is Home Depot a stable stock?
HD stock still remains a top investment choice due to its wide economic moat, growing dividends, and steady earnings. Home Depot (NYSE:HD) stock has been on an absolute tear in the last two decades, easily outpacing the broader market in this period.
Home Depot (NYSE: HD) has historically been a wildly successful investment. Shares have produced a total return, including dividends, of 6,680% in the last 30 years. This gain crushes the broader S&P 500 index.
| Stock | Sector | Trailing 12-month dividend yield* |
|---|---|---|
| Stanley Black & Decker Inc. (SWK) | Industrials | 3.5% |
| Atmos Energy Corp. (ATO) | Utilities | 2.7% |
| T. Rowe Price Group Inc. (TROW) | Financials | 4.3% |
| Chevron Corp. (CVX) | Energy | 3.9% |
The Winner: Home Depot
While Home Depot stock is ever-so-slightly more expensive than Lowe's stock on a price-to-earnings basis, its stronger financial position and higher dividend yield make it the better choice to invest in right now.
Fair Value Estimate for Home Depot
With its 1-star rating, we believe Home Depot stock is overvalued compared with our fair value estimate of $263 per share. For fiscal 2023, we expect roughly $153 billion in sales, a 14.2% operating margin, and $15.11 in earnings per share.
Home Depot has a conensus rating of Moderate Buy which is based on 19 buy ratings, 6 hold ratings and 2 sell ratings.
The financial health and growth prospects of HD, demonstrate its potential to outperform the market. It currently has a Growth Score of B. Recent price changes and earnings estimate revisions indicate this would be a good stock for momentum investors with a Momentum Score of B.
| Stock | 2024 return through March 31 |
|---|---|
| Arcutis Biotherapeutics Inc. (ARQT) | 206.8% |
| Janux Therapeutics Inc. (JANX) | 250.9% |
| Trump Media & Technology Group Corp. (DJT) | 254.1% |
| Super Micro Computer Inc. (SMCI) | 255.3% |
The Company today announced that its board of directors approved a 7.7% increase in its quarterly dividend to $2.25 per share, which equates to an annual dividend of $9.00 per share. The dividend is payable on March 21, 2024, to shareholders of record on the close of business on March 7, 2024.
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- Berkshire Hathaway.
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Why is Home Depot stock so expensive?
Dealing with macro headwinds
Home Depot posted revenue gains of 19.9% and 14.4%, respectively, in fiscal 2020 and fiscal 2021. The surge in demand can be credited to low interest rates, a robust economic backdrop, and consumers who were flush with cash and ready to tackle larger renovation projects.
Largest shareholders include Vanguard Group Inc, BlackRock Inc., State Street Corp, Capital World Investors, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, VFINX - Vanguard 500 Index Fund Investor Shares, Geode Capital Management, Llc, Morgan Stanley, Capital Research Global Investors, and Bank Of ...
Home Depot is a leader
Part of that gap can be explained by Home Depot's larger overall market share, along with its greater penetration in the professional contractor niche. Lowe's, in contrast, gets more of its business from do-it-yourself customers who have become much more cautious in their spending commitments.
While Home Depot is not recession-proof, since sales can decline when the housing market weakens, it is still a safe stock to hold for the long term. Management doesn't stop looking for ways to strengthen the business, so investors should expect Home Depot to exit a downturn in the economy stronger than before.
Shares of Home Depot (NYSE: HD) finished lower today as investors seemed to give a thumbs-down to its deal to buy SRS Distribution, a leading specialty-trade company that will help it expand its presence in the pro market.
Home Depot stock price stood at $335.36
According to the latest long-term forecast, Home Depot price will hit $350 by the end of 2024 and then $450 by the middle of 2025. Home Depot will rise to $500 within the year of 2026, $600 in 2027, $700 in 2028, $800 in 2030, $900 in 2032 and $1000 in 2035.
Cash flow and profit margins remain strong and reflect Home Depot's premium position in its competitive industry. The chain converted 14.2% of sales into operating income this past year, which was slightly below its pandemic peak of about 15% of sales.
Thanks to its stellar lineup of products and services tailored for every project, Home Depot and its market seem ripe for delivering more. Statista research predicts the U.S. home improvement scene will balloon to a jaw-dropping $621 billion by 2025, jumping from $457 billion in 2020.
According to our current HD stock forecast, the value of Home Depot shares will drop by -2.87% and reach $ 324.14 per share by April 24, 2024. Per our technical indicators, the current sentiment is Bearish while the Fear & Greed Index is showing 39 (Fear).
The highest analyst price target is $290.00 ,the lowest forecast is $225.00. The average price target represents 10.87% Increase from the current price of $228.35. What do analysts say about Lowe's Companies? Lowe's Companies's analyst rating consensus is a Moderate Buy.
How much does Home Depot pay per stock?
HD 's annual dividend is $9.00 per share. This is the total amount of dividends paid out to shareholders in a year. The Home Depot, Inc.'s ( HD ) ex-dividend date is March 6, 2024 , which means that buyers purchasing shares on or after that date will not be eligible to receive the next dividend payment.
Own a part of the apron by joining the Employee Stock Purchase Plan (ESPP). Building ownership in The Home Depot means you can further share in the success of the company, which is made possible by your contributions.
| S.No. | Name | 1mth return % |
|---|---|---|
| 1. | Hindustan Zinc | 38.41 |
| 2. | Lloyds Metals | 26.28 |
| 3. | NMDC | 16.74 |
| 4. | Apar Inds. | 15.58 |
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| Stock | Expected Change in Stock Price* |
|---|---|
| Tesla Inc. (TSLA) | 61% |
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