The one thing that was really holding home improvement giant Home Depot (HD) back was the homeowner’s reluctance to get involved with projects that might require debt. However, new reports suggest the homeowner is coming out of that funk. Yet investors did not put much stock in these reports, and sent Home Depot shares down fractionally in Monday afternoon’s trading.
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Word from the UBS Evidence Lab noted that homeowners are starting to reconsider the market and their connection to it. Further, they are showing “cautious but steady interest in home improvement projects…” that could be a sign of recovery in the market. And if homeowners want home improvement projects back in play, then Home Depot stands to benefit substantially.
In fact, the UBS Evidence Lab Housing Intentions Survey found that 59% of homeowners—based on a sample size of just over 2,000 adults—were planning to take on a home improvement project in the next 12 months. Given that the 12-survey average was running 58% before this survey, that shows a clear, if modest, gain in the process.
More Fall Savings Emerge
Plus, those interested homeowners will likely find smaller project fodder on hand at Home Depot as well. New reports note that Home Depot is bracing for fall and the colder weather beyond with big sales on home products just right for the season. Mattresses, mattress toppers, bedding sets, and sheet sets are all on sale in the short term, as well as bath linens.
Meanwhile, for those in the market for some smaller home improvement projects that Milwaukee Tool products will also be on sale. Reports note that Home Depot will offer up Milwaukee Tool packages that come with a battery and charger, and for a limited time, an impact driver free.
Is Home Depot a Good Long-Term Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on HD stock based on 20 Buys and six Holds assigned in the past three months, as indicated by the graphic below. After a 3.57% loss in its share price over the past year, the average HD price target of $445.88 per share implies 14.42% upside potential.
