Home Depot (HD)

US housing recovery is no longer a question but is very real. This company will be a part of that continuous housing recovery. Trading at 20X earnings at a 15% growth rate.

Has a strong focus on companies that benefit from a housing revival. Have restructured to streamline their operations since 2007. Have bought back 1 billion shares since 2002. Just announced they are going to buy back $16 billion of stocks. 11% growth rate in their dividend in the last 3 years. Yield of 2.2%.

On her Watch List. This is a play on repair, renovation, US housing and existing home sales. They are seeing a pickup in larger transactions. Well managed. A little expensive.

(A Top Pick Feb 15/12. Up 48.65%.) A play on the improving housing market. Very well managed. Used the downturn to really improve their business. Distribution centers are much, much more efficient. Getting a little bit fully priced but the organic growth available will allow the stock price to drive forward.

Looking at this one as a way to play the continuing boom in the US housing. Would like to see it pull back a bit.

(Market Call Minute) wonderful job on restructuring company for the renovation market.

One of the largest home improvement retailers. Well run company that is trimming up their operations, selling off some. Only issue is that it is expensive at 22x PE. Tail winds that are benefiting them are already priced in. Good management and good opportunities with macro themes going on at the moment.

In the near-term, this company will benefit from some of the rebuilding efforts due to the super storm Sandy. Longer-term you have improving housing market and demographics such as aging of homes. Under Obama you’ve got low interest rates going forward. You are looking at about a 15% long-term annual growth rate and this should lift given that the housing market does seem to be getting some traction.

This is an indirect way to play housing recovery in the US and improving employment and consumer sentiment and consumption. Has executed very well in spite of the weak US consumer spending. Have been improving margins. Have been buying back stock and increasing dividends. She would like to see it below $50 before buying.