Equity Research Report-the Home Depot

Equity Research Report –The Home Depot

Stock Name: The Home Depot, Inc.

Stock Symbol: HD

Sector: Services

Sub-Industry: Home Improvement Stores

Summary: The Home Depot, Inc., together with its subsidiaries, operates as a home improvement retailer. The company’s stores sell building materials, and home improvement and lawn and garden products to do-it-yourself, do-it-for-me (at D-I-F-M), and professional customers. It also offers installation services for D-I-F-M customers. The company’s installation programs include products, such as carpeting, flooring, cabinets, countertops, and water heaters. In addition, it provides installation services for products sold through its in-home sales programs, including roofing and siding products, windows, furnaces, and central air systems. The company serves home owners, professional remodelers, general contractors, repairmen, small business owners, and tradesmen. As of September 13, 2012, it operated 2,249 retail stores in the 50 states of the United States, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces, and Mexico. The company also sells its products on its Website, homedepot.com. The Home Depot, Inc. was founded in 1978 and is based in Atlanta, Georgia.

Recommendation: Buy

Recommendation: Buy

Recommendation: Buy

Current Price: $64.64 (December 04, 2012)

1 Year Target: $69.00 (3.35% sustainable growth)

Dividend Yield: 1.79%

1 Year Expected Return: 61.44%

Investment Highlights:

1. Being the largest home improvement retailer in the world, Home Depot has significant bargaining power.

2. Supply chain transformation led to increased efficiencies and created better competitive positioning.

Investment Highlights:

3. Being the largest home improvement retailer in the world, Home Depot has significant bargaining power.

4. Supply chain transformation led...