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If You Invested $1000 in Home Depot a Decade Ago, This is How Much It'd Be Worth Now
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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.
Another factor that can influence investors is FOMO, or the fear of missing out, especially 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 2,317 retail stores across the globe as of the end of fiscal 2021. 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 500,000 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
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Home Depot ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in November 2012 would be worth $5,113.19, or a gain of 411.32%, as of November 11, 2022, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 186.72% and gold's return of -2.59% over the same time frame.
Going forward, analysts are expecting more upside for HD.
Home Depot boasts a robust surprise trend, which continued in second-quarter fiscal 2022. The company reported ninth straight quarter of earnings and sales beat in the fiscal second quarter. Results gained from strong demand for home-improvement projects, robust housing market trends and ongoing investments. The company also benefited from continued strength in both Pro and DIY categories as well as digital momentum. Its interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic for the past few quarters, aiding digital sales. However, shares of the company declined in the past year. The company reported soft gross margin in the fiscal second quarter driven by higher supply chain investments. Higher inventory levels and interest expense also remain concerning.
The stock is up 10.21% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2022. The consensus estimate has moved up as well.
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If You Invested $1000 in Home Depot a Decade Ago, This is How Much It'd Be Worth Now
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.
Another factor that can influence investors is FOMO, or the fear of missing out, especially 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 2,317 retail stores across the globe as of the end of fiscal 2021. 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 500,000 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
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Home Depot ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in November 2012 would be worth $5,113.19, or a gain of 411.32%, as of November 11, 2022, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 186.72% and gold's return of -2.59% over the same time frame.
Going forward, analysts are expecting more upside for HD.
Home Depot boasts a robust surprise trend, which continued in second-quarter fiscal 2022. The company reported ninth straight quarter of earnings and sales beat in the fiscal second quarter. Results gained from strong demand for home-improvement projects, robust housing market trends and ongoing investments. The company also benefited from continued strength in both Pro and DIY categories as well as digital momentum. Its interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic for the past few quarters, aiding digital sales. However, shares of the company declined in the past year. The company reported soft gross margin in the fiscal second quarter driven by higher supply chain investments. Higher inventory levels and interest expense also remain concerning.
The stock is up 10.21% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2022. The consensus estimate has moved up as well.