2024-05-19 09:47:14 ET
Summary
- Home Depot's Q1 results were impacted by a delayed spring and challenging macro environment, with revenues and comparable sales declining.
- The company's focus on the Professional segment is facing headwinds from the high-interest rate environment.
- Home Depot's planned acquisition of SRS Distribution aligns with its strategy, but its impact is not expected until next fiscal year.
Investment Thesis
The last time I wrote about Home Depot ( HD ), in November 2023, I talked about how the company’s investments in technology should allow it to be more efficient. However, I did raise my concern about the company’s strategy to shift its focus towards the Professional segment. I had a Hold recommendation on the stock. Since my article was published, the stock has gained 11.9%, underperforming the S&P 500, which gained 17.8% during the same period. ...
Read the full article on Seeking Alpha
For further details see:
Home Depot: Don't Rely On SRS Acquisition Yet