Is Home Depot a good stock to buy?
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. The bulls are hoping the good times will keep rolling.
The company paid out $16 billion of direct returns to investors in the past year, almost evenly split between dividends and stock buybacks. There's good reason to expect this figure to rise in 2024 given that Home Depot is projecting a return to per-share earnings growth this year. The stock isn't cheap right now.
Home Depot stock price stood at $379.93
According to the latest long-term forecast, Home Depot price will hit $500 by the end of 2024 and then $600 by the middle of 2026. Home Depot will rise to $700 within the year of 2027, $800 in 2028, $900 in 2029, $1000 in 2031, $1100 in 2033 and $1200 in 2035.
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.
Home Depot has received a consensus rating of Moderate Buy. The company's average rating score is 2.63, and is based on 16 buy ratings, 7 hold ratings, and 1 sell rating.
Risk and Uncertainty. We give Home Depot a Medium Uncertainty Rating owing to its strong brand recognition, which has helped stabilize sales through the cycle. Sales are largely driven by greater consumer willingness to spend on category goods, with stable existing-home price growth and decent turnover.
| Year | Prediction | Change |
|---|---|---|
| 2025 | $ 444.24 | 15.84% |
| 2026 | $ 514.59 | 34.18% |
| 2027 | $ 596.08 | 55.43% |
| 2028 | $ 690.48 | 80.04% |
| Stock | Expected Change in Stock Price* |
|---|---|
| Tesla Inc. (TSLA) | 61% |
| Mastercard Inc. (MA) | 14.2% |
| Salesforce Inc. (CRM) | 7.2% |
| Advanced Micro Devices Inc. (AMD) | 11.3% |
| Name | 5 Year Price Total Return |
|---|---|
| Home Depot Inc | 136.5% |
| Lowe's Companies Inc | 172.2% |
| Tractor Supply Company | 209.9% |
| Williams-Sonoma Inc | 517.4% |
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 ...
What is the projection for Home Depot in 2024?
Home Depot, a bellwether of the housing market and US economy, said sales dropped over the winter and it's a expecting a slow 2024. Sales at stores open for at least one year fell 3.5% last quarter, and Home Depot projects that sales will continue to decline 1% in 2024.
The all-time high Home Depot stock closing price was 395.20 on March 21, 2024. The Home Depot 52-week high stock price is 396.87, which is 4.5% above the current share price. The Home Depot 52-week low stock price is 274.26, which is 27.8% below the current share price.
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.
In 2022, Home Depot's annual sales amounted to over 157 billion U.S. dollars, whereas its main competitor, Lowe's, reached more than 97 billion U.S. dollars of sales.
As of today (2024-03-24), The Home Depot's share price is $390.28. The Home Depot's Peter Lynch fair value is $201.74. Therefore, The Home Depot's Price to Peter Lynch Fair Value Ratio for today is 1.93. During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of The Home Depot was 2.05.
You always have control of your shares. You may withdraw your DSPP holdings of Home Depot stock at any time, or may ask the program administrator to sell your shares. Features include: Low fees; low minimums.
HD implied volatility (IV) is 16.9, which is in the 19% percentile rank. This means that 19% of the time the IV was lower in the last year than the current level. The current IV (16.9) is -4.6% below its 20 day moving average (17.7) indicating implied volatility is trending lower.
Lowe's Companies has 2.26% upside potential, based on the analysts' average price target. Lowe's Companies has a conensus rating of Moderate Buy which is based on 14 buy ratings, 9 hold ratings and 0 sell ratings. The average price target for Lowe's Companies is $250.27.
A strong buy for long-term returns
Confidence in the company remains high, and share prices could go higher still. Home Depot combines stability with growth potential and forward-looking smarts.
The consensus among experts is that Home Depot (HD-N) is a well-run company with a strong business model and a focus on long-term success. There is optimism about the company's ability to navigate challenges such as inflation and interest rates, with a potential for growth in the home improvement market.
Is Home Depot financially strong?
Home improvement specialist Home Depot (HD -0.29%) is one of the nation's largest retailers, a stalwart by almost any definition. It's also carrying a lot of debt: $37.5 billion in long-term liabilities as of the quarter ending Oct. 29. 2023.
Home Depot stock (symbol: HD) underwent a total of 13 stock splits. The most recent stock split occured on December 31st, 1999. One HD share bought prior to January 20th, 1982 would equal to 341.71875 HD shares today.
Returns By Period
The Home Depot, Inc. had a return of 13.29% year-to-date (YTD) and 41.11% in the last 12 months. Over the past 10 years, The Home Depot, Inc. had an annualized return of 20.03%, outperforming the S&P 500 benchmark which had an annualized return of 10.89%.
(NYSE:W), Match Group, Inc. (NASDAQ:MTCH), and Palantir Technologies Inc. (NYSE:PLTR) are some of the stocks that will double in 2024, besides StoneCo Ltd. (NASDAQ:STNE).
| STOCK | ACTION | TRADE PRICE |
|---|---|---|
| NATCOPHARM | BUY | 958 |
| MOTHERSON | BUY | 117 |
| BSOFT | BUY | 745 |
| HINDCOPPER | BUY | 283 |
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