Haven't updated this thread for six months so why not. I've worked for HD for over 25 months now. I continue to believe they are best in class in their niche. Still more efficient than Lowes though they have closed the gap some. As I've mentioned Lowes CEO brought some of our procedures to LOW and it was a wise move. We no longer grow sales twice as fast. hey stepped it up to at least 80% of HD now, and even better some recent quarters. HD has handled the Covid challenges better than I expected. Very few employee infections and the daily health screening has something to do with that, and general practices of course. Huge improvement in online and curbside pickup. They put a huge effort into navigating this.
I think HD is a "Hold" right now. LOW is a probably a weak buy after the small SP recovery last week. I even flipped some LOW shares. 2021 over 2020 COMPS are going to be VERY challenging for both HD and LOW after growing 25-30% instead of the usual 3-6%. Market may shrug it off, but I don't see a trigger for a big run unless the market loses it's mind. (yet again lol) Another factor is wage pressure and it's not going away. Amazon, Costco and Target really raised the bar with substantial minimum wage increases. HD responded with a weekly Covid pay kicker which lasted until last week. They ended that and just gave everyone a permanent raise that was about 75% of the bonus. I just received my fourth pay raise in two years. Still just a retired guy job of course but it's nice to be acknowledged and be paid a little better than most. I am SO thankful for the awesome job I had before I retired. I can't imagine trying to survive today and making $16-18/HR after 10+ years service, but that is just retail if you aren't managing a store..
I do look forward to adding significantly to my HD position but I really believe I'll have a chance to buy shares somewhat cheaper. I believe that is true for most big box retailers. They'll get hammered if a decent stimulus doesn't happen and unemployment rises with the latest Covid wave. I am as sure as one can be about that. The jury is out on holiday season shopping. It will probably be good enough.
I think HD is a "Hold" right now. LOW is a probably a weak buy after the small SP recovery last week. I even flipped some LOW shares. 2021 over 2020 COMPS are going to be VERY challenging for both HD and LOW after growing 25-30% instead of the usual 3-6%. Market may shrug it off, but I don't see a trigger for a big run unless the market loses it's mind. (yet again lol) Another factor is wage pressure and it's not going away. Amazon, Costco and Target really raised the bar with substantial minimum wage increases. HD responded with a weekly Covid pay kicker which lasted until last week. They ended that and just gave everyone a permanent raise that was about 75% of the bonus. I just received my fourth pay raise in two years. Still just a retired guy job of course but it's nice to be acknowledged and be paid a little better than most. I am SO thankful for the awesome job I had before I retired. I can't imagine trying to survive today and making $16-18/HR after 10+ years service, but that is just retail if you aren't managing a store..
I do look forward to adding significantly to my HD position but I really believe I'll have a chance to buy shares somewhat cheaper. I believe that is true for most big box retailers. They'll get hammered if a decent stimulus doesn't happen and unemployment rises with the latest Covid wave. I am as sure as one can be about that. The jury is out on holiday season shopping. It will probably be good enough.