Home Depot (HD)

They are continuing to benefit from a strengthening housing market. 3% of their buyers are professional buyers but represent 40% of their sales. They are focusing on servicing the pro builder. He thinks they can continue to benefit from the housing market recovery.

Great stock. Great growth company. Continues to take market share putting smaller independent retailers out of business. They have better service. Spending more money on technology to help customers find what they need. Once they are done with these investments earnings are going to pick up again.

Well-run. In its sweet spot in the last few years because of strong housing starts and low interest rates. They've expanded their direct-to-tradespeople business. They've grown their net margins by 50% in the past few years. Now is a good entry point. Better-run than Lowe's.

He holds it for a longer term investment. Millennials will renovate as they step into homes. It is a very well managed company. In terms of a seasonal trade, when the market turns up you will get a trade and he sees a move up to the highs.

Home improvement is a great space with strong competition and decent margins. You can't go wrong with HD. They're generating cash flow and buying back stocks. But he prefers Lowe's.

Solid blue-chip US retailer dominant in its space. Had a brilliant run in the last 5 years with a nice correction in January and February. These guys are a solid retailer with good prospects.

It has been one of the best stocks in the last years off of the bottom of the markets in 2009. It has been suffering lately partly because of the increase in the interest rates that has started to take the shining off some of the housing related stocks. Also, the valuation probably went a little ahead of itself.

In the middle innings of the US housing recovery. Well-managed, They've more than doubled their margins since 2008. (Analysts' target of $211.69)

Down around 10% recently. They missed their just-released earnings. Tomorrow's housing numbers will show the housing is in a big recovery, which means DIY renos are on a big recovery. The number-one chain. A blue-chip name. (Analyst’s price target is $208.76.)

They have a huge moat. A great company. Really hard to replicate. Done a great job improving margins. A safe play for the next few years.

Likes it. Good company. Consumer spending strong in the U.S. which will help it long term. Well-managed with good service. A good hold at these levels.

He is very bullish on the US housing and renovation market. He would have no hesitation in owning this. The valuation has certainly gotten up there, but you are getting pretty good growth from a retailer, and he doesn't see Amazon encroaching on them.

(A Top Pick Feb 14/17. Up 32%.) This is really a play on a resurgence on the housing market in the US, which is growing very nicely in most major states. The millennials are starting to buy homes. This company is growing at twice the growth of the GDP on same-store sales. They've been able to grow their dividend north of 20% a year for the last 5 years.

Spending a significant amount buying back shares. This company is in a great spot. One of the few retailers in North America that is not impacted by the on-line phenomena. Most purchases is on an “at need” basis by contractors. It’s very insulated from the on-line phenomena. Valuation is getting expensive and is trading at a premium multiple to the market at around 24X. One of the few retail companies you can buy without worrying about Amazon or some other online retailer. He would like to see a pullback before stepping in.

This is at an all-time high, so what do you do in 2018? Just because this is at an all-time high, why punt it out of your portfolio? In 10 years time, this company will do very well. There is a lot of room left. Dividend yield of 1.9%. (Analysts’ price target is $183.)