Home improvement retailer, Home Depot Inc. HD has been in investor's goods books lately owing to its solid earnings trend, efforts to improve customer experience, promising capital strategy, and the housing market recovery. These factors have helped this Zacks Rank #3 (Hold) stock climb up the charts, despite the challenges in the retail sector.
Shares of Home Depot jumped 6% in the last three months, outperforming the Zacks categorized Building Products – Retail industry's gain of 1.8%. Further, the stock is supported by a VGM Style Score of "B" and long-term earnings growth rate of 13%, which justify its growth prospects.
Possible Deterrents
However, intense competition and a soft economic recovery may prove deterrents, pushing back home improvement projects. Moreover, the company's significant exposure to international markets makes it vulnerable to currency headwinds.
Bottom Line
Nevertheless, we remain confident of the company's growth prospects as its strategic initiatives clearly outweigh the deterrents. Hence, we would suggest holding on to the stock for the moment.
Stocks to Consider
Meanwhile, investors may consider better-ranked stocks in the retail sector like Burlington Stores Inc. BURL, Dollar General Corp. DG and Target Corp. TGT All these three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Burlington Stores has gained nearly 13.6% year to date. Also, the company's estimate for the current fiscal have witnessed positive estimate revisions in the last 30 days and has a long-term growth rate of 15.9%.
Dollar General has a long-term EPS growth rate of 10.6%. Further, the company's estimates have witnessed positive estimate revisions in the last 30 days.
Target has witnessed positive estimate revisions in the last 30 days. Further, the stock has a long-term growth rate of 5.4% and recorded an average beat of 16.5% in the trailing four quarters.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>
Home Depot, Inc. (The) HD: Free Stock Analysis Report
Dollar General Corporation DG: Free Stock Analysis Report
Target Corporation TGT: Free Stock Analysis Report
Burlington Stores, Inc. BURL: Free Stock Analysis Report
To read this article on Zacks.com click here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.