by winston » Sat Feb 10, 2018 10:41 pm
not vested
If you’re looking for a great discount that is also a stable opportunity, consider Home Depot Inc (NYSE:HD). HD stock was looking mighty frothy. However, the broader market correction chopped it down quite nicely. I’m expecting a little bit more of a hit, down between $160 and $170. If it gets there, buy!
As a secular retail play, I absolutely HD stock. I don’t care if we have a recession, depression, or succession: if something goes wrong with your home (and it’s fixable), you go straight to Home Depot. That means the company’s consumer base is all-inclusive.
It doesn’t matter if you’re a rugged everyman or a Millennial who can’t tell the difference between a Philips head screwdriver and a tampon; you need HD.
Now, the risk factor is housing, and the markets reaction to it. Currently, housing prices are out of control, and I’m not sure if wages can keep up, especially with rising inflation. However, this also incentivizes home owners to renovate since this is a seller’s market.
Subsequently, I expect HD stock to rise steadily on the prospect of increasing revenues.
Source: Investor Place
It's all about "how much you made when you were right" & "how little you lost when you were wrong"