2024-05-16 17:35:39 ET
Summary
- The Home Depot is well-positioned for revenue and margin growth, with benefits from easing AUR comparisons and normalized demand patterns.
- The company's revenue outlook is positive, with strong customer engagement and sales, especially in Pro sales and building materials.
- Margin growth prospects are positive, with benefits from operating leverage, lower shrinkage, and technological advancements to improve efficiency.
Investment Thesis
I last covered The Home Depot, Inc. ( HD ) in May 2023 and the stock has given a good 23% return since then. Moving forward, the company is well-positioned to deliver revenue and margin growth. The company’s revenue should benefit from easing Average Unit Retail ('AUR') comparisons, normalizing demand patterns for SKUs like gardening and outdoor power equipment which saw pull forward demand during Covid, and strength in the company’s Pro sales channel driven by good execution and market share gains....
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For further details see:
Home Depot: Improving Growth Prospects