DXPE - Margin Improvement Can Drive HD Supply Holdings Upwards
HDS Has Upside Potential
HD Supply Holdings (HDS) distributes industrial distributors to the contractors, maintenance professionals, home builders, industrial businesses, and government entities in North America. I expect HDS's stock price to strengthen in 2019 as the economic drivers get stronger and the company's gross margin expands.
Many of the company's primary value drivers have been exhibiting strength in 2019. While the new privately-owned house units have weakened in 2019 compared to the last quarter of 2018, the low foreclosure rate and the unemployment rate should lead to sharper sales growth in 2019.