With the housing market on the upswing, with US home prices on the rise, this not only helps the housing market itself but accessory markets as well. This has made Home Depot well positioned for growth and development.
More and more investors, namely homebuyers are returning to the market, along with it are the needs for each house to be customized to become a home. This is the niche market of Home Depot, as home building services complementing the market would necessarily grow together with the growth of the housing industry.
One of the key performance metrics of Home Depot is its net income growth of 19.5% in the past three years. Its operating margin is much higher than the industry average, wiorking on an optimum level of risk at a current debt to equity ratio of 0.61.
With these in mind, it is important to consider Home Depot as a must buy stock. The share price would climb as the housing market recovers and with it the growth of accessory and complementary home building products would occur.
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