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Home Depot Can Likely Beat Expectations If Recession Is Avoided

Jul. 01, 2023 3:58 AM ETThe Home Depot, Inc. (HD)
Christopher Robb profile picture
Christopher Robb
602 Followers

Summary

  • Home Depot (HD) is a quintessential blue-chip stock that is currently at a reasonable valuation and has had expectations reduced after COVID demand waned.
  • The firm's proven business, high quality, and exposure to inexorable demographic trends make it a prime candidate for long-term ownership.
  • The firm is attractively valued on a relative and intrinsic basis, and the tailwind of strong housing and economic activity creates a good risk/reward for those starting a position.
  • There are many risks to the stock, and if recession does occur, then my thesis will be challenged and the price would decline significantly.
Home Depot Reports Record Quarterly Sales

Justin Sullivan/Getty Images News

In practical and material terms, the American dream has long centered around agricultural land ownership further in our past, and home ownership is the modern-day manifestation of this political touchstone. In our increasingly divided society, it is also what the political scientist John Rawls

This article was written by

Christopher Robb profile picture
602 Followers
I was Senior Writer and Vice President at Fundstrat Global Advisors for over 2 years. Prior to that, I was Senior Research Analyst at Dentons, now the world's largest law firm. I focus on company management, fundamentals, earnings, contrarian investing, and the effects of geopolitical developments on risk assets.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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