/Home%20Depot%2C%20Inc_%20app%20on%20phone%20by-%20IgorGolovniov%20via%20Shutterstock.jpg)
Atlanta, Georgia-based The Home Depot, Inc. (HD) operates as a home improvement retailer. Valued at $425.1 billion by market cap, the company offers a wide range of building materials, home improvement, lawn, and garden products, as well as provides DYI ideas, installation, repair, and other services.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and HD definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the home improvement retail industry. HD remains a top player in home improvement retail, using its strong brand and extensive 2,300+ store network and online presence to lead the market. With high sales and improved inventory, HD shows impressive operational efficiency and inventory management skills crucial to staying competitive.
Despite its notable strength, HD slipped 2.9% from its 52-week high of $439.37, achieved on Nov. 26. Over the past three months, HD stock gained 17.9%, outperforming the Dow Jones Industrials Average’s ($DOWI)9.8% gains during the same time frame.
In the longer term, shares of HD rose 23.1% on a YTD basis and climbed 31.9% over the past 52 weeks, outperforming DOWI’s YTD gains of 18.8% and 23.9% returns over the last year.
To confirm the bullish trend, HD has traded above its 50-day and 200-day moving averages since mid-August, with slight fluctuations.
HD's success can be credited to their “One Home Depot” plan, which has led to improvements in their supply chain, technology, and digital experience. Their interconnected retail strategy and robust technology have shown consistent growth in web traffic. HD's partnership with FIFA for the FIFA World Cup 26 in North America will further boost its presence as the leading home improvement retailer in the region. With stores across Canada, Mexico, and the USA, HD will serve as the official home improvement retail supporter for the tournament.
On Nov. 12, HD shares closed down more than 1% after reporting its Q3 results. Its revenue of $40.2 billion beat analyst estimates of $39.2 billion. The company’s adjusted EPS was $3.78, surpassing analyst estimates of $3.66.
HD’s rival, Lowe's Companies, Inc. (LOW) shares lagged behind the stock, with a 21.4% gain on a YTD basis and 31.2% returns over the past 52 weeks.
Wall Street analysts are bullish on HD’s prospects. The stock has a consensus “Strong Buy” rating from the 35 analysts covering it, and the mean price target of $435.39 suggests a potential upside of 2.1% from current price levels.
