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The Home Depot, Inc. (HD), headquartered in Atlanta, Georgia, is the world's largest home improvement retailer, providing a wide range of building materials, home improvement products, and services. With a market cap of $365.41 billion, the company plays a pivotal role in the industry, offering innovative solutions for home improvement, construction, and maintenance needs.
Companies valued at $200 billion or more are generally considered "mega-cap" stocks, and Home Depot fits this criterion perfectly, signifying its substantial size, stability, and influence in the retail industry. With its position as the world's largest home improvement retailer, HD exemplifies the strength and resilience of a mega-cap company underpinned by a robust market presence, steady financial performance, and a commitment to driving growth and innovation in the home improvement sector.
HD shares are trading 7.1% below their 52-week high of $396.87, which they hit on Mar. 21. HD has gained 11.9% over the past three months, outperforming the broader Nasdaq Composite ($NASX), which has gained 5.8% over the same time frame.
In the long term, HD is up 6.3% on a YTD basis, and the shares have gained 11.9% over the past 52 weeks. In comparison, the Nasdaq has gained 18% in 2024 and rallied 27% over the past year.
To confirm the recent bullish price trend, HD has been trading above its 50-day moving average since mid-August and its 200-day moving average since late August.
Home Depot's shares gained more than 1% after announcing Q2 results on Aug. 13. The company reported revenue of $43.18 billion, surpassing analyst estimates of $42.57 billion. Also, its EPS was $4.67, exceeding expectations of $4.54. However, HD lowered its sales guidance for fiscal 2024, causing its stock to drop initially.
Highlighting the contrast in performance, HD's competitor, Lowe's Companies, Inc. (LOW), has significantly underperformed both HD and the broader market indexes. LOW has gained 9.8% over the last 52 weeks.
Analysts are optimistic about HD's prospects, given the strong price performance. The stock has a consensus rating of "Strong Buy" from 33 analysts in coverage. The mean price target of $384.30 reflects a 4.3% premium over current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
