Topic: How To Invest

Q: Hi Pat: What is your opinion of Home Depot? I have been watching it for some time. Thanks.

Article Excerpt

A: Home Depot Inc., $193.62, symbol HD on New York (Shares outstanding: 1.2 billion; Market cap: $223.4 billion; www.homedepot.com), operates warehouse-style home-improvement stores that average 104,000 square feet, plus an additional 24,000 square-foot garden centre. Each outlet typically carries 30,000 to 40,000 items. The company has 2,285 locations in the U.S., Canada, Mexico, Puerto Rico, the U.S. Virgin Islands and Guam. Home Depot’s sales have risen steadily over the last five years—up 28.0% from $78.8 billion in 2014 to $100.9 billion in 2018 (fiscal years end January 31). Profits have also risen steadily—up 64.0%, from $5.4 billion in 2014 to $8.8 billion in 2018. Due to 16% fewer shares outstanding, as the result of share buybacks, per-share earnings rose 98.4% over the same five years, from $3.76 to $7.46. In its fiscal 2019 first quarter, ended April 29, 2018, Home Depot’s sales rose 4.4%, to $24.9 billion from $23.9 billion a year earlier. Overall same-store sales improved 4.2%, while same-store sales at U.S….