The company The Home Depot Inc. (NYSE: HD) has a large and well-expanded business of construction products, supply tools, and services spread wide across the 2,200 stores of the firm present in the United States, Mexico, and Canada. The company operates on a wholesome market capital of around $300 billion and in the United States the company is currently the largest home improvement retailer.
The year 2020 was an on-and-off year for the company as it was affected a little by the coronavirus pandemic but the company did not fall so down and it stands fine. This year, let us see how the company shapes itself. The major competitor of this firm, Lowe’s Companies Inc. (NYSE: LOW) had better growth in the year 2020 as compared to Home Depot.
The Home Depot Inc. (NYSE: HD)
- 52 Week Range: $140.63 – $292.95
- Average Volume: 4,012,650
- Market Capital: $306.002B
- Forward Dividend and Yield: 00 (2.19%)
Lowe’s Companies Inc. (NYSE: LOW)
- 52 Week Range: $60.00 – $180.67
- Average Volume: 5,119,114
- Market Capital: $126.321B
- Forward Dividend and Yield: 40 (1.39%)
If we consider the statistics, then definitely The Home Depot is the winner since it has a higher stock value with a larger market capitalization and also a better forward dividend and yield but the growth of Lowe’s is also noteworthy along with.
Home Depot showed much improvement in its earnings towards the end of the year 2020 and now, the analysts, as well as the investors, expect the company to perform better and have a profitable year this time. The hopes are high because the company has a good momentum of growth and if this continues well, it can be a doubtless and perfect investment of profit. Also, at a deeper level of analysis, the company has an overall better hold and operating margin than Lowe’s. Therefore, one thing that is very much evidence about the company is its strength and the investors have to see how it strengthens further.
The Home Depot Stock: Right time to invest or not?
This might not be the perfect time to invest in the stock of this company because this is the time when the investors and analysts should keep an eye on the growth of this firm rather than investing. It is also not the worst time for investing in this company and hence, the investors who are ready to take the little risk that comes along with them can invest in the firm. The stock market is always volatile and the investors are not free from risk while they invest in any of the firms. The amount of risk is what matters in such a case. Therefore, the investors can also invest in the company if they feel sure about their investment or they can wait until the time the investment becomes more certain.