Home Depot Looks Overvalued After 80% Gains

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After an 80% rise since the March lows of this year, at the current price of around $270 per share, we believe Home Depot’s stock (NYSE: HD) has reached its near term potential. The home improvement retailer has seen its stock outperform through the coronavirus crisis, rising by almost 27% year-to-date (compared to a 2% growth in the S&P), benefiting from the stay-at-home bump. Home Depot’s stock is already about 54% higher than it was at the end of 2017. Our dashboard, What Factors Drove 54% Change in Home Depot Stock Between 2017 and Now?, provides the key numbers behind our thinking, and we explain more below.

Some of this growth over the last

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Home Improvement Products Market In-Depth Analysis including key players Home Depot, LoweaEUR(TM)s, Inside Tweedy and Popp Hardware

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The MarketWatch News Department was not involved in the creation of this content.

Sep 22, 2020 (Market Insight Reports) —

JCMR Recently announced Global Home Improvement Products Market Report is an objective and in-depth study of the current state aimed at the major drivers, market strategies, and key players growth. The study also involves the important Achievements of the market, Research & Development, new product launch, product responses and regional growth of the leading competitors operating in the market on a universal and local scale. The structured analysis contains graphical as well as a diagrammatic representation of worldwide Home Improvement Products Market with its specific geographical regions including following key players Home Depot, LoweaEUR(TM)s, Inside Tweedy and Popp Hardware, Ace Hardware, Rona, Canadian Tire, Homebase, Wickes, Bauhaus, Bricostore, Praxis, Alibaba, EBay, Amazon, Bunnings Warehouse , .

[Due to the pandemic, we have included a special section on the Impact of

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Is Home Depot (HD) Benefiting From the Stay-at-Home Trend?

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The Home Depot Inc. HD, which is a leading home-improvement retailer in the United States, is one of the prime beneficiaries of the coronavirus pandemic-induced a stay-at-home trend across all regions. This trend has proved to be a blessing for the home improvement industry. Notably, there has been a marked increase in repairs and home-remodeling projects in the past few months, as people are spending more time at home due to the increased work-from-home situation.

The company noted that accelerated customer engagement for home improvement in the second quarter of fiscal 2020 led to strong growth in its Pro and DIY customer categories. Notably, it witnessed strong demand for exterior and interior projects like deck building, painting projects, landscape work and home repairs due to increase wear and tear. As a result, DIY sales outpaced Pro sales growth in the fiscal second quarter.

Further, its Pro customers’ sales accelerated significantly

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Home Depot, Inc. (The) (NYSE:HD) – Wall Street Weighs In On Home Depot’s Blowout Q2, BofA Upgrades Stock

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Home Depot Inc (NYSE: HD) was one of several major retailers to report blowout second-quarter earnings this week, sending the home improvement stock soaring.

Home Depot posted second-quarter EPS of $4.02 on $38.05 billion in revenue Tuesday. Both numbers topped consensus analyst estimates of $3.71 and $34.53 billion, respectively. Revenue was 23.4% higher year-over-year.

U.S. same-store sales rose 25%, and Home Depot’s average purchase amount was up 10.1%. It was the first quarter of double-digit same-store sales growth for Home Depot in more than seven years.

Several analysts weighed in on the stock following the impressive print. 

Long-Term Tailwinds For Home Depot: BofA Securities analyst Elizabeth Suzuki said it’s not too late to buy Home Depot shares to capitalize on the shelter-in-place environment.

“Although home improvement spending in the coming quarter may decelerate amidst sequentially declining government stimulus/unemployment benefits, we believe that the longer-term tailwinds for the home improvement industry

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Home Depot and Lowe’s benefit as bored shoppers hammer away at home

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  • Shoppers continue to flock to Home Depot and Lowe’s, as home improvement projects have eclipsed other forms of entertainment spending.
  • Investment firm Wedbush Securities highlighted this trend in an August 10 note.
  • According to analysts, “reduced travel and entertainment spending” has prompted a shift to home improvement spending. 
  • Both Home Depot and Lowe’s report second-quarter earnings next week. 
  • Visit Business Insider’s homepage for more stories.

Back before the coronavirus pandemic, people went to the movies, ate out at restaurants, and traveled to faraway places on vacation.

Now that cinemas are shuttered, indoor dining is at reduced capacity, and flights are a risky proposition, consumers’ “fun” budgets are increasingly going towards home improvement projects.

Wedbush Securities equity research analysts Seth Basham and Nathan Friedman highlighted this trend in an August 10 note about two giants in the industry: Home Depot and Lowe’s. Both home improvement retailers have seen major gains from

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Home Depot discounts kitchen and bathroom faucets by up to 40% today

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Today only, as part of its Special Buy of the Day, Home Depot offers up to 40% off kitchen and bathroom faucets. Free shipping is available for all. Our top pick is the Glacier Bay Nottely Touchless Pull-down Kitchen Faucet from $109. Originally $199, today’s deal drops to $109 from the usual $175 price tag. This is the second-best offer we’ve tracked in 2020. Notable features here include a touchless design that has built-in motion sensing, which is great if you have dirty hands and don’t want to clean up. Plus, it’s available in a variety of color options to enjoy and match with your decor. Rated 4.1/5 stars. Hit the jump for more.

Another standout today is the Glacier Bay Lyndhurst Wall-mounted Pot Filler at $110. Regularly up to $160, today’s deal is another all-time low. We often see deals on kitchen and bathroom faucets at Home

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At Home Depot and Lowe’s, Home-Improvement Splurge Can Go On

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Home-improvement retailers

Home Depot


HD -3.25%

and

Lowe’s


LOW -4.70%

had a phenomenal quarter, but investors aren’t in the mood to savor the gains.

Home Depot’s sales grew 23.4% in the quarter ended Aug. 2 from the year-ago period, while Lowe’s revenue jumped 30% in the quarter ended July 31. Both companies exceeded analysts’ estimated revenue by around 10%. Diluted earnings per share increased 75% year over year at Lowe’s and 26.8% at Home Depot. Yet shares of Home Depot are down around 2% since it reported earnings Tuesday morning, and Lowe’s was basically flat after reporting Wednesday.

As in the preceding quarter, sales to do-it-yourself consumers outpaced those to professional contractors at both retailers. Lowe’s benefited more from this trend as DIY customers make up a higher portion of its business. Interestingly, sales growth was strong in all U.S. regions for both companies and not correlated with the size

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Home Depot takes up to 40% off Kohler bathroom products, today only

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Today only, as part of its Special Buy of the Day, Home Depot is taking up to 40% off Kohler bathroom products and more. Free shipping is available for all. Our top pick is the Kohler Alteo 2-handle Bathroom Faucet for $165.39. Regularly around $225, we’ve seen it drop below this price just once before in 2020. With a sleek chrome design, this faucet will bring a new level of design to your space. It’s made for 8-inch widespread setups, which is pretty standard in bathrooms. Home Depot customers have left a collective 4.5/5 star rating. Hit the jump for additional top picks in today’s sale.

Another standout today is the Kohler Single Hole Chrome Bathroom Faucet at $218.62. Regularly $300 or so, today’s deal is the best we can find by around 20%. This model offers a single-handle design, a higher-end premium design, and WaterSense technology, which

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Home Depot sales explode during pandemic as millions take on home improvement projects

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Home Depot’s fiscal second-quarter sales surged to easily top Wall Street’s expectations as consumers continued working on home projects and gardening amid the coronavirus outbreak. (AP Photo/Jim Mone, File)

With millions of people staring at their walls while working from home, sales at Home Depot surged in the second quarter, with same-stores sales in the U.S. spiking 25%.

Overall revenue for the Atlanta company hit $38.05 billion, far exceeding the $34.94 billion Wall Street was expecting, according to a Zacks Investment Research survey. It easily topped last year’s revenue of $30.84 billion for the three months ended Aug. 2.

Sales at stores open at least a year, a key indicator of a retailer’s health, climbed 23.4%, globally, trailing only the massive surge in comparable-store sales in

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The Home Depot | History

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Self-reliance. Resilience. Tireless optimism. These are the traits of our customers. We built The Home Depot for them, to provide them with the products, services and knowledge they need to create the homes of their dreams. Decades later, they’re still the No. 1 reason we wear the orange apron. Our story, now almost 40 years in the making, is also theirs. 

Bernie Marcus and Arthur Blank dreamed up The Home Depot from a coffee shop in Los Angeles in 1978. Avid DIYers, they envisioned a superstore that would offer a huge variety of merchandise at great prices and with a highly trained staff. Employees would not only be able to sell, but they would also be able to walk customers at every skill level through most any home repair or improvement. 

With help from investment banker Ken Langone and merchandising guru Pat Farrah, Marcus and

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