Home Depot & Lowes - Buy These Cash Flow Machines On The Pullback For A Long-Term Buy-And-Hold

Feb. 08, 2022 4:06 PM ETThe Home Depot, Inc. (HD), LOW31 Comments
Anthony Cataldo profile picture
Anthony Cataldo
7.02K Followers

Summary

  • I tend to favor Home Depot over Lowe’s, but both companies are cash flow machines at an attractive price-per-share on a very recent pullback.
  • Both have enjoyed meteoric increases in price-per-share, and the focus on work-from-home appears to be “sticky,” even forcing employers to provide bonuses to attract new employees.
  • I wanted to get an idea of just how current and anticipated inflation and nominal 30-year home mortgage interest rates might impact Home Depot and Lowe’s – if at all.
  • In the popular press and the business news, consumers appear to be more concerned about inflation than Covid and other issues - inflation will increase all nominal interest rates, just as it did in 1979, 1980 and 1981.
  • I believe that Home Depot and Lowe’s are excellent long-term buy-and-hold investments for the Covid, post-Covid and relatively high inflationary period that is anticipated, just as they were for 1979, 1980 and 1981.

Wall street sign in New York with New York Stock Exchange background

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Logos for both companies

LOGOS for both companies

Sources: Home Depot & Lowe’s

Home Depot & Lowe’s Outperformed the S&P500 from 1978 through 1982 and During a Period of High & Double-Digit Inflation

Inflation and the fear of

Fidelity

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TDAmeritrade

TDAmeritrade

TDAmeritrade

TDAmeritrade

30 year mortgage rates & HD stock price

My Excel file

My Excel file

My Excel file

Fidelity

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This article was written by

Anthony Cataldo profile picture
7.02K Followers
Full name for licenses is Anthony Joseph ("A.J.") Cataldo II.  Retired university accounting professor, CPA, CMA, CGMA and author of 10 books and 200+ articles and columns in 50+ different journals and outlets, with experience as CFO, Government Auditor, Public Accountant and Litigation Support Expert Witness in cases involving GM, Ford, and other big cap firms.  Years ago, the Securities and Exchange Commission used 3 of my research articles in a fraud case.  I have taught at 10 universities including Northeastern & UCBerkeley (online and during Covid).Paige Whiteside is my niece, a Master's of Finance student at the University of Arizona, with an undergraduate degree from Arizona State University, and I have encouraged her to submit some articles to Seeking Alpha for publication consideration.  We will not be covering the same stocks or securities, we will not be commenting on each other's content, and, as required by Seeking Alpha, and appropriately so, I am disclosing this association/relation in my profile bio.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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