Home Depot (HD)

This has been under a huge amount of downside pressure in the last little while. The chart shows it has recently been in a downward trend. The key is that seasonality tends to start moving higher around October and continues moving higher right through to the end of the year. Wait until about the middle of October, but between now and then, watch for any weakness as an opportunity to accumulate.

Basic technical analysis shows this has higher highs and higher lows. It might pull back to its trend line in this current correction. If you see it bounce off of a level near where you estimate where the trend line is, that would be the point where you Buy it. This is a great stock. Buy it if it corrects a bit.

It is cyclical. Pump prices and jobs are all favouring home improvement. People are now getting around to discretionary home improvement from after the last crash. Posted a phenomenal quarter with buybacks in place. Dividend $0.59 Yield is 1.99% Estimated P/E: 22.32 Doing everything right.

(Top Pick Sep 9/14, Up 35.90%) He just can’t keep using it as a top pick. It continues to execute and takes market share. He would continue to buy it today.

(A Top Pick Sept 3/14. Up 31.02%.) The largest home-improvement retailer, and leveraged to the improving US housing market. We are less than half way through the whole recovery program and people want to fix up their houses. Housing is appreciating, so they are going to see more business. Stock is getting up so much that it is getting expensive.

(A Top Pick April 29/15. Up 49.46%.) When the US housing market restructured and everyone’s mortgage went underwater, the 1^st thing they stopped doing was putting money into their homes. When they start to get back above water again, they start renovating. This still has more upside.

It is a core holding for a lot of income investors. Great business, management and margins. Unlike other retailers, they are defensible against this Amazon online retailing trend. It is a great way to play the housing sector improvement and home improvements. It has a strong dividend growth profile (20%/year). 2.1% dividend yield.

(A Top Pick May 6/14. Up 47.86%.) This was a play on improving US housing, home turn over, home resell and GDP growth. 90% of its earnings come from the US.

A play on the housing recovery and is one of those that protect you. If you don’t see housing starts grow dramatically, the renovation market tends to pick up. Very, very well-managed company. ROE is very high, pushing 70%. Expects they will do about $6 a share in 2016. Not terribly expensive and yet has a good growth profile. Dividend yield of 2.18%.

People have put off home renovations for many, many years. Now that their houses are back in the black and they are starting to feel better about the stock they have in their home, they are now starting to spend money on renovations.

Has been a great stock. A very well run company. They have benefited from a pickup in home renovation. You always have to pay a good multiple.

A very good, well-managed company. At this point in time it is very well positioned for the economy that is slow growing, but certain areas of it have lots of potential. The household formation of the US peaked in 2005-2006 in the $1,500,000 range. We are just now poking our head above the $1 million range. Because of this, there is a long ways to go to getting back to full capacity of household formation. This company is uniquely positioned to take advantage of that. Trading at about 20X earnings.

US housing market continues to recover, which is the story behind this company. There are also very favourable demographic trends for them. Houses are aging in the US and interest rates remain low, and there is a big pent up demand for home-improvement and remodelling projects. US consumer is becoming more confident because the labour market is improving. Also, energy costs are cheaper now. Trading at 22X forward earnings with a 15% growth rate in terms of earnings per share.

Results are consistent with the better economic numbers and wage growth. She does not own it due to valuation.

(A Top Pick Feb 26/14. Up 45.53%.) Not an inexpensive stock. He expects them to make about $5.50 a share in 2015, which puts the multiples in the low 20s. They continue to outperform and surprise on the upside.