Gordon Reid Home Depot HD-N DON'T BUY Oct 22, 2024

Is both a cyclical and secular growth story and can ride any cycle. It can grown in any environment, and not held hostage to interest rates. It benefits from aging homes (that need repairs), Millennials want to own homes and will spend at HD, and the new home shortage which need pro contractors to build them (who spend at HD).

Is the top stock to buy in an interest rate cut cycle, which is happening. (The Fed will decide tomorrow.)

They report tomorrow. Lower interest rates will push sales, and the extreme weather is behind us.

It still doesn't sell at 30x PE. If the Fed cuts rates, this will earn more money than people think. Buy at $410-415.

This and Lowe's are quality businesses that he's long owned. Healthy profits and capital efficiency. They will benefit if interest rates decline. Be patient.

Still buying here. Purchase of SRS broadens its addressable market further. Getting better at e-commerce. Pursuing repair and maintenance segment.

It's a long-term monster he's owned forever. Remains profitable with capital efficiency. Ultimately, it needs to benefit from a home recovery and improvement spend, and that needs lower interest rates. He's patient.

Housing has a long way to go, but was up in Q4. She will take any improvement. They have very easy comps. 

It reports Tuesday. He expects a soft quarter from weak housing, but HD will benefit from the rebuilding from the south-eastern US and the L.A. fires.

Interest rates cuts are stalling, so shares are -7.74% the past month; housing turnover and the weather have been bad. Tool sales are down. It reports tomorrow, but he will buy after that report. He has faith, because when the street was shorting this in 2008's housing crisis, HD gained market share and bought back a ton of shares.