2 Reasons to Buy Home Depot Stock Now

Home Depot (NYSE: HD  ) is a retailing giant. The company boasts a market cap of more than $100 billion and annual sales of roughly $75 billion. But that massive size doesn't mean that this blue chip can't grow quickly from here.

In the video below, Fool contributor Demitrios Kalogeropoulos provides two big reasons why Home Depot's stock is a good bargain right now. First, the home improvement retailer's sales growth is beating smaller rival Lowe's (NYSE: LOW  ) -- and Home Depot's outperformance is even more pronounced when you compare the two company's returns on invested capital, he notes.

Second, even after spiking higher these past two years, the home improvement market has a long way to improve before it returns to its longer-term average. Home Depot is poised to capture much of those gains, so the company should have no trouble hitting its ambitious targets for profitability growth into 2015.

1 stock for 2014
Looking for more stocks for the year ahead? The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 19, 2014, at 10:08 PM, Thennig wrote:

    Do you foresee HD stock ever splitting again in the near future?

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2767742, ~/Articles/ArticleHandler.aspx, 9/25/2016 4:54:26 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:00 PM
HD $127.79 Down -0.96 -0.75%
Home Depot CAPS Rating: ****
LOW $72.35 Up +0.27 +0.37%
Lowe's CAPS Rating: ****