Stock Strategist: Why Home Depot Should Be on Your Watchlist

[Morningstar Logo]( [Company Site]( [Company News]( [Membership]( [Portfolio]( [Stocks]( [Options]( [Funds]( [ETFs]( [Markets]( [Tools]( [Personal Finance]( [Discuss]( Stock Strategist Why Home Depot Should Be on Your Watchlist Its massive scale creates a low-cost advantage that is the basis of its wide moat. [tab_bar] by Jaime M. Katz, CFA | 5/27/2020 2:30:00 PM Home Depot [HD]( is the world’s largest home improvement retailer, on track to deliver more than $115 billion in revenue in 2020. It continues to benefit from a stable housing market and improvements in its merchandising and distribution network. The company earns a wide economic moat rating because of its economies of scale and brand equity. While Home Depot has produced strong historical returns as a result of its scale, operational excellence and concise merchandising remain key tenets of our long-term margin expansion assumptions. Its evolving distribution network will help elevate the company’s brand intangible asset, with faster time to delivery improving the do-it-yourself experience and market delivery centers catering to the professional business. The success of ongoing initiatives should set the operating margin back on a rising trajectory in 2021. To read more, click [here](. Sponsored Links [Buy a Link Now]( Podcast: Investing Insights From Morningstar.com Listen to a roundup of the latest videos featured on Morningstar.com [in this podcast]( available through iTunes. Free Issue | Morningstar's Stock Newsletter >> Morningstar StockInvestor is celebrating more than 10 successful years of high-quality stock investing. Its two real-money portfolios have outperformed the S&P 500 since 2001. [Get new ideas for the core of your stock portfolio](. Search Most Recent Articles [Core Bond Funds Leading the Way in 2020]( [Indexing During the 2010s]( [The Rise and Fall of Bank-Loan Funds]( Latest Analyst Reports [Royal Caribbean Cruises]( [ViacomCBS]( [Coupa Software]( [Molson Coors Beverage]( [Lowe's Companies]( ABOUT OUR EMAIL TO UNSUBSCRIBE this email address to the Stock Strategist newsletter, please click "reply" and then click "send." This will unsubscribe only this email address to this specific newsletter. All subscription changes will take effect within one business day. Replies are not read by individuals, so please do not use this for queries about Morningstar.com. If you have questions about Morningstar.com or your membership, send a note to [joe@morningstar.com](mailto:%20joe@morningstar.com). ABOUT OUR PRIVACY POLICY Please [click here]( to learn about Morningstar's privacy policy. (c) Copyright 2020. Morningstar, Inc. 22 West Washington Chicago, Illinois, 60602 All rights reserved.