Bull Case for $HD (Home Depot)

Hi friends, I am not an expert stock trader/investor by any means but I thought I’d mention how Home Depot is a solid buy for me. Home Depot is currently the 27th most valuable stock by market cap, and I think it will continue to grow.

1. In the 3 month chart, SPY is down 4% whereas HD is down 22%. I don’t think HD deserved to be hit harder than SPY in this bear market, so I think putting your money into HD has higher potential for growth than companies that went down in proportion with SPY.
2. Bears on HD are mentioning that people remodeled their house a lot during the covid pandemic but the pandemic is coming to an end. My response: People really will find any reason to be bearish. Not every stock is a pandemic stock. Google is a pandemic stock too because people will stop googling about covid, etc.
3. I think people don’t realize that Home Depot is not just a store that sells hammers and nails. They deserve to be put in the same category as companies like Walmart who always have potential to do more.
4. The “Home” category is generic enough that they have potential to break into many different other industries. I could definitely see them competing with companies like Best Buy in the tech industry (did you know that Home Depot sells TVs?). They could also venture into industries like furniture, maybe compete with IKEA.
5. The company has a good reputation for being a reliable and friendly company that treats their salaried employees well (yes their minimum wage employees will probably have things to complain about but that’s every company).
6. They are dominant in both brick and mortar stores and in ecommerce. What’s not to like about that?
7. I’m not well versed enough to look at their financials and judge their stock price based on that, but they are way down from their ATH, and I just think the stock market is a ponzi scheme anyway that doesn’t have much connection to the fundamentals like that. Home Depot has no signs of doing poorly as a company, and quarter after quarter I expect their price to go up at a faster rate than SPY.