Home Depot (HD) is having a great year. The home improvement retail giant has seen its shares rally more than 15% so far in 2013, besting the broad market's run by a factor of two year-to-date. Home Depot's scale makes it the largest home improvement retailer in the world, with more than 2,250 stores spread across the U.S., Canada, and Mexico.
Strong home improvement spending has provided HD with an attractive tailwind in the past few years, and as housing numbers continue to improve, so too should investors' fortunes. While Home Depot entered the financial crisis as the number-two most attractive home improvement retailer (after rival Lowe's (LOW)), an aggressive restructuring effort undid the growth-at-all-costs strategy that left HD overleveraged and underperforming. Today, this stock's price performance speaks for itself.Home Depot still has some attractive growth opportunities ahead of it. With solid exposure to Mexico already, tapping Latin American growth is a viable strategy for the firm in the years ahead. While HD decided last year to scrap its expansion plans in China, investors should applaud management's willingness to change course in one of its most volatile markets. If HD can successfully carry over its svelte supply chain system to new markets, success should follow.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV