Home Depot with strong returns


Stock market blog

Home Depot with strong return: +105.8% in 5 years

In the stock exchange blog “Money”, the expert François Bloch portrays a dazzling or a lurching share every day. Today: the hardware store company The Home Depot Inc.

«Money» – the daily stock exchange blog by François Bloch.

CH Media

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Home Depot with strong return: +105.8% in 5 years (hold)

Fundamental valuation discount: -0.6%

Company portrait: the Home Depot Inc. is a home improvement company that operates a number of American home improvement stores under the name The Home Depot. With more than 2,280 self-service stores in the USA and several branches in Canada, Puerto Rico, the Virgin Islands and Guam as well as Mexico, the group is present in the North and South American markets. The range of goods is aimed at do-it-yourselfers as well as construction companies and craftsmen. In addition to a wide range of building materials and accessories, gardening tools and plants complete the range. The company is considered the world’s largest hardware store company. (Source:www.finanzen.net)

investment proposal: Still, don’t sell the US giant prematurely Home Depot (stock symbol: HD US), which will really take off again in the current US economic environment, now that interest rates remain low. The US$322 billion giant will continue to delight investors well into the future. The slightly sporty price/earnings ratio of 17.44 points as of 2023 should be kept in mind. The plus points of this high flyer also include the substantial dividend yield of 2.07%, which you should reinvest in new paper every three years. In the coming year, according to my calculations, earnings per share should increase by 10.05%. So you now understand why I have no worries about the corresponding price/earnings ratio, which I mentioned at the beginning. I call this paper one «cross-country skier», because by virtue of his position he will always be a leader in his sector. Therefore, you will never see extreme jumps in this value, but a steady development with new highs over time. The stock has gained 105.8% in local currency over the past five years. This is all the more remarkable because the S&P 500 index was only able to achieve a price increase of 61.3% in the same period.

Investment strategy: Holding the stock without hedging

Investment strategy: Title still has a very strong upward trend for the foreseeable future, despite very good performance already in 2021.

Conclusion: Still top for the conservative investor over the next 36 months.

Questions from readers: [email protected]


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