Home Depot Inc (NYSE:HD) Is Safe From the Amazon Effect, Poised to Cross $170

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Home Depot Inc (NYSE:HD) shares have gained about 22% over the past 6 months. The home improvement supplies company has experienced massive growth since 2012, and stock value nearly quadrupled in the period. Home Depot Inc (NYSE:HD) came under fire after it unintentionally left the data (names, addresses, phone numbers) of around 8,000 customers accessible on the internet without any prtection. The data, however, didn’t not include any social security numbers or financial information. Home Depot was also a victim of a massive data breach in 2014, in which hackers stole information from 56 million credit and debit cards. Home Depot Inc (NYSE:HD) stock price wasn’t affected significantly after the breach. But analysts think that the company needs to get its act together when it comes to customer data and security.

Home Depot Inc (NYSE:HD) is safe from what analysts called the “Amazon Effect” in the retail industry. Lowe’s is the only competitor of Home Depot, which is investing heavily in expanding its physical presence. Home Depot Inc (NYSE:HD) on the other hand is focusing on revamping and improving its existing stores.

Data shows that people are preferring to improve and remodel their houses instead of buying new ones. This trend is expected to continue in the US, resulting in a high demand of home supplies. In 2016, Home Depot’s sales increased by 7% and net income increased by 13.5% as compared to 2015.

Home Depot Inc (NYSE:HD) has an edge in the renovation industry over Amazon as customers prefer to buy home improvement products like drywall or lumber, granite countertop in physical stores. Home Depot Inc (NYSE:HD) major strength is its renovation services business, which accounts for 40% of its Pro Services business arm. The company is also working on improving its deliveries and data analytics to increase and sustain growth.

Home Depot Inc (NYSE:HD) was named as one of the most innovative companies of 2017 by Fast Company. The company generated $90 billion in revenues in 2016. It has not opened a single new store in over 3 years.

Home Depot is well aware of the changing trends. Its online sales accounted for 5.6% of its revenues the third quarter of 2016, compared to just 1% recorded in 2011.

Home Depot Inc (NYSE:HD) appeals to growth and income investors. The stock has a dividend yield of 2.3%, which is above average for the market. The company has increased its dividend consecutively over the last 10 years.

Last week, financial services firm BTIG increased its price target to $175.