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[Logo]( Proprietary Data Insights Financial Pros’ Top Home Improvement Stock Searches in the Last Month Rank Ticker Name Searches
#1 [HD]( Home Depot 54
#2 [LOW]( Lowe's 8
#3 [HVT]( Haverty Furniture 2
#4 [LL]( Lumber Liquidators 1
#5 [FND]( Floor & Decor 1
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- Professional Services (25% of total revenues) - Aimed at the pros, this segment offers specialized services like installations and tool rentals.
- Online Sales (15% of total revenues) - Highlighting the shift towards digital, this segment captures all e-commerce transactions, an area Home Depot is keenly expanding. Despite experiencing a slight dip in sales recently due to a delayed spring season and a downturn in large project spending, Home Depot remains positive about its strategies and future. Its current strategic vision includes: - Enhancing the interconnected retail experience by integrating its online and physical stores to create a seamless shopping journey.
- Expanding the Pro business to deepen its relationships with professional contractors through its Pro Ecosystem, which offers specialized services and products. Home Depot also recently announced plans to acquire SRS Distribution. SRS Distribution excels in serving the roofing, pool, and landscape industries—areas where Home Depot has seen growth potential. Financials [Financials] Source: Stock Analysis Spring started late this year, pushing back traditional sales of outdoor and garden products in Q1. At the same time, overall consumer spending declined, as we’ve seen in other discretionary categories like apparel. This took net sales down 2.3% YoY for the quarter, driven by a 1.0% decline in customer transactions and a 1.3% decline in average ticket prices. On a per-square-foot basis, sales were down 3.4%. Yet, the company has maintained gross margins even as operating and profit margins declined slightly. The good news is free cash flow margin improved YoY and continues to get better. Debt is a bit high, sitting at $52 billion compared to $29 billion in 2019. We’re not thrilled about this since it was used to finance share buybacks and dividends. Valuation [Valuation] Source: Seeking Alpha Home Depot’s current valuation based on P/E and price-to-cash flow puts it in line with its 5-year average. That’s not great, considering the uncertain outlook. Lowe’s (LOW) trades at a better ratio on both counts. However, it’s facing the same consumer softness as Home Depot. Growth [Growth] Source: Seeking Alpha Across the industry, sales are either flat or down YoY, with the forward outlook about the same. Even high end specialty stores like Haverty (HVT) and Floor & Decor (FND) aren’t forecasting banner years in 2024. Profitability [Profit] Source: Seeking Alpha Despite its size, Home Depot runs gross margins similar to Lowe’s. However, both companies boast solid returns on assets and total capital. [The only defense company you should be looking at]( This is the ONLY defense company you should be watching right now. No, it's not Boeing, Lockheed Martin or Northrop Grumman. It's a tiny $2 firm pioneering AI in the defense sector, poised to secure a historic defense contract. Their breakthrough AI technology is set to revolutionize defense strategies at a speed and efficiency previously unimaginable. That's why the U.S. The Pentagon considers this AI ""a game-changer."" And why they've set aside $20 billion to fund this project. See how a major Pentagon contract could send this tiny $2 AI stock soaring. [Get the details here ]([Ad] Our Opinion 5/10 We’re not excited about Home Depot or Lowe’s. Both face lower consumer spending and heavy debt loads in a high interest rate environment. Housing supply remains constrained, which we see as the largest impediment. Until that changes, we don’t expect either company to break out of the doldrums. [-facebook-share]( [-twitter-share]( [-linkedin-share]( [-email-share](mailto:?body= https%3A%2F%2Fstginvc.wpengine.com%2F%3Fp%3D594803?utm_medium=ic-nl&utm_source=119323 ) News & Insights Just Spilled - [Experts Pick Their Top 5 Gold Miners for 2024](
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