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Buy or Sell: Home Depot (HD) - Real Time Insight

By: Zacks.com
Posted: 4/19/2013 11:13:00 AM
Referenced Stocks: HD

With a housing recovery well underway, many are looking for equity plays on this important trend. While homebuilders were once a popular destination, investors have branched out into the construction product and retail segments for tangential exposure to this positive situation.

That is because, with housing prices back on track in some markets, some homeowners are finally looking at trading up or moving out of their current residences. This creates a huge demand for new home furnishings, appliances, and general construction materials in order to make sure that everything is in top shape for potential buyers.

While there are a number of companies that fit this bill, arguably one of the biggest is Home Depot ( HD ) . The retail giant is home to many of the aforementioned listed products, and thus could be a big beneficiary of the trend.

However, some are starting to worry about housing once more, thanks to a recent flurry of so-so data. It also hasn't helped that the stock market has been weak these last few days, suggesting to some that a focus on more defensive plays could be the way to go in the near term.

But what do you think about Home Depot?

Does this massive retailer have room to run thanks to a stronger housing market, or will a spring swoon push this company into bear territory?

Reasons to Buy:

Reasons to Sell:

Which story wins out for you; the strong history of HD repeating itself in the months ahead, or a lackluster economic environment pushing this potentially overvalued retailer back to Earth?

Let us know in the comments section below!

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