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Here's How Much You'd Have If You Invested $1000 in Home Depot a Decade Ago
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Home Depot (HD - Free Report) ten years ago? It may not have been easy to hold on to HD for all that time, but if you did, how much would your investment be worth today?
Home Depot's Business In-Depth
With that in mind, let's take a look at Home Depot's main business drivers.
Based on net sales, The Home Depot Inc. is the world’s largest home improvement specialty retailer with 2,291 retail stores across the globe as of the end of fiscal 2019. It offers a diverse range of branded and proprietary home improvement items, building materials, lawn and garden products, décor products and related services.
With the help of its stores, the company operates throughout the United States (including Puerto Rico and the territories of the Virgin Islands and Guam), Canada and Mexico and employs more than 300,000 associates. The company’s average store area is almost 104,000 square feet with approximately 24,000 square feet of additional outside garden area. It also functions through a network of distribution and fulfillment centers, as well as a number of e-commerce websites.
The company typically serves three primary customer groups: Do-It-Yourself (DIY), Do-It-For-Me (DIFM), and Professional Customers.
DIY Customers: These customers are usually homeowners, who prefer purchasing products and completing installations on their own. The company engages these customers in various platforms to provide product and project knowledge.
DIFM Customers: These customers are usually homeowners, who purchase products on their own and employ third-parties to complete the projects and installations. The company offers a variety of installation services in sores, online, or in their homes through in-home consultations for DIFM customers.
Professional Customers: This customer segment mostly comprises professional remodelers, general contractors, repairmen, small business owners, and tradesmen. These customers build, renovate, remodel, repair and maintain residential properties, multifamily properties, hospitality properties and commercial facilities.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Home Depot ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in July 2011 would be worth $8,730.90, or a gain of 773.09%, as of July 8, 2021, and this return excludes dividends but includes price increases.
The S&P 500 rose 222.06% and the price of gold increased 12.32% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for HD.
Shares of Home Depot have risen and outpaced the industry in the past three months. The company boasts a robust surprise trend with fourth straight quarter of earnings and sales beat posted in first-quarter fiscal 2021. Results gained from the continued strong demand for home-improvement projects as well as its ongoing investments. The company is effectively adapting to the continued boom in renovations and construction activities, driven by investments in its business over the years and the dedication of its associates to serve customers. It also gained from strong growth in its Pro and DIY customer categories and continued digital momentum. However, increased penetration of lumber products in the company’s sales mix continued to hurt gross margin. Also, continued pressure from shrink and higher transportation costs were headwinds.
Over the past four weeks, shares have rallied 5.25%, and there have been 12 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in Home Depot a Decade Ago
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Home Depot (HD - Free Report) ten years ago? It may not have been easy to hold on to HD for all that time, but if you did, how much would your investment be worth today?
Home Depot's Business In-Depth
With that in mind, let's take a look at Home Depot's main business drivers.
Based on net sales, The Home Depot Inc. is the world’s largest home improvement specialty retailer with 2,291 retail stores across the globe as of the end of fiscal 2019. It offers a diverse range of branded and proprietary home improvement items, building materials, lawn and garden products, décor products and related services.
With the help of its stores, the company operates throughout the United States (including Puerto Rico and the territories of the Virgin Islands and Guam), Canada and Mexico and employs more than 300,000 associates. The company’s average store area is almost 104,000 square feet with approximately 24,000 square feet of additional outside garden area. It also functions through a network of distribution and fulfillment centers, as well as a number of e-commerce websites.
The company typically serves three primary customer groups: Do-It-Yourself (DIY), Do-It-For-Me (DIFM), and Professional Customers.
DIY Customers: These customers are usually homeowners, who prefer purchasing products and completing installations on their own. The company engages these customers in various platforms to provide product and project knowledge.
DIFM Customers: These customers are usually homeowners, who purchase products on their own and employ third-parties to complete the projects and installations. The company offers a variety of installation services in sores, online, or in their homes through in-home consultations for DIFM customers.
Professional Customers: This customer segment mostly comprises professional remodelers, general contractors, repairmen, small business owners, and tradesmen. These customers build, renovate, remodel, repair and maintain residential properties, multifamily properties, hospitality properties and commercial facilities.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Home Depot ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in July 2011 would be worth $8,730.90, or a gain of 773.09%, as of July 8, 2021, and this return excludes dividends but includes price increases.
The S&P 500 rose 222.06% and the price of gold increased 12.32% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for HD.
Shares of Home Depot have risen and outpaced the industry in the past three months. The company boasts a robust surprise trend with fourth straight quarter of earnings and sales beat posted in first-quarter fiscal 2021. Results gained from the continued strong demand for home-improvement projects as well as its ongoing investments. The company is effectively adapting to the continued boom in renovations and construction activities, driven by investments in its business over the years and the dedication of its associates to serve customers. It also gained from strong growth in its Pro and DIY customer categories and continued digital momentum. However, increased penetration of lumber products in the company’s sales mix continued to hurt gross margin. Also, continued pressure from shrink and higher transportation costs were headwinds.
Over the past four weeks, shares have rallied 5.25%, and there have been 12 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.