The Home Depot Inc (HD, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its solid financial position. With a current share price of $342.42, The Home Depot Inc has experienced a daily decline of 1.57%, set against a three-month change of -8.06%. A detailed analysis, underscored by the GF Score, indicates that The Home Depot Inc is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These components are weighted differently to calculate a composite score that ranges from 0 to 100, with 100 representing the highest potential for outperformance. The Home Depot Inc boasts a GF Score of 92 out of 100, highlighting its strong potential for market outperformance.
- Financial strength rank: 5/10
- Profitability rank: 10/10
- Growth rank: 9/10
- GF Value rank: 5/10
- Momentum rank: 8/10
Understanding The Home Depot Inc's Business
The Home Depot Inc is the world's largest home improvement specialty retailer, with a market cap of $339.55 billion and annual sales of $151.83 billion. Operating over 2,300 stores across the United States, Canada, and Mexico, the company offers a wide range of building materials, home improvement products, and services. Its strategic acquisitions, such as Interline Brands and HD Supply, have broadened its market reach into the maintenance, repair, and operations sector, enhancing its growth prospects.
Profitability and Growth Metrics
The Home Depot Inc's Profitability Rank stands at an impressive 10/10, reflecting its superior ability to generate profits compared to its peers. Additionally, the company's Predictability Rank of 5.0 stars highlights its consistent operational performance, which instills confidence among investors.
The Home Depot Inc's commitment to growth is evident in its high Growth Rank of 9/10. The company's 3-Year Revenue Growth Rate of 7.5% surpasses 54.61% of its industry peers. Moreover, its EBITDA has seen a robust increase, with a three-year growth rate of 9 and a five-year growth rate of 12.2, showcasing its ongoing ability to expand and generate increased earnings.
Conclusion: The Home Depot Inc's Market Position and Future Outlook
Considering The Home Depot Inc's strong financial strength, exceptional profitability, and consistent growth metrics, the GF Score effectively highlights the company's unmatched position for potential market outperformance. Investors looking for robust investment opportunities may find The Home Depot Inc an attractive option.
For more insights and to discover other companies with strong GF Scores, GuruFocus Premium members can explore our exclusive GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
