Home Depot is the largest home improvement chain in the world, with 2,250 stores spread across all three countries in North America. The firm's customers include retail consumers as well as wholesale construction buyers, positioning that's given HD a more direct route to housing spending than smaller hardware competitors. Overly aggressive growth was Home Depot's biggest problem in the last few years -- and management learned important lessons as a result. Going forward, the firm should be able to avoid repeating history while growing its geographic footprint more cautiously
Home improvement spending decoupled from the housing market back in 2008, breaking Wall Street's view that a housing bust would destroy sales for home improvement retailers. That revenue resilience justifies a higher multiple now that sales are back in full swing.
To see all of this week's Rocket Stocks in action, check out the Rocket Stocks portfolio at Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.
Twitter and become a fan on Facebook.
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 + 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