Stock Analysis: Home Depot (HD)

Founded in 1978, the Home Depot (HD) is the leading North American home improvement retailer, with over 2,200 stores, including about 184 stores in Canada and 110 in Mexico. HD sells to both the do-it-yourself and professional contractor markets.

Company Description

Home Depot, HD: Fits my risk profile and growth strategy. A long-term stock that has performed well overtime with a strong dividend yield and beta that matches market performance (less volatility). The RSI shows a slightly overbought stock however the fundamentals are fantastic, other than being overvalued at the moment.

5-Component Theory:

Historical Performance: Strong

Beta: 1.10

Dividend yield: 2.17%

5-year Return: 120.71%

Intuition: I used to work at this company throughout college and I can tell you that their gross profits are outstanding along with expense and shrink management. I see the Home Depot as a recession proof industry moving forward and when the virus is over sales will only continue to increase throughout the years.

November 13th, 2020
November 13th, 2020

Michael’s Rating: A Buy

Best Regards,

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