It turns out that the revelation that home improvement giant Home Depot (HD) managed to face down the largest theft ring in its history resonated with shareholders. Resonated sufficiently, in fact, to send shares surging up nearly 2% in Monday morning’s trading.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Reports noted that surveillance video of a thief pocketing merchandise in a Home Depot location in California turned out to have far-ranging effects. The California thieves were part of a larger group that, so far, has stolen over $10 million in merchandise. In fact, the theft this ring has perpetrated is reportedly so widespread that it reached to the other side of the country. Thefts in Atlanta were reportedly connected to that same ring.
The process did not seem particularly sophisticated, as a man was caught stuffing electrical breakers into his jacket. At one point, the same man was caught using a pole to pull electrical equipment from high shelves. The shoplifted merchandise was then sold to contractors and similar businesses at a discount, which became pure profit to the thieves.
Enlisting Shaq
It has been a while since Shaquille O’Neal played basketball professionally. But Shaq is still keeping busy, and joined up with Home Depot to build do-it-yourselfer inspiration with Tips From the Tool Shaq, a short feature segment that is in its second year.
Home Depot is building on the success of this marketing effort by taking Shaq’s efforts to a different part of the house: the back yard. In this case, though, it has become the Shaq Yard. Tips From the Shaq Yard, as the new segment is known, offers advice on outdoor lighting, seeding plans for lawns, “power plays” involving pressure washers, and more.
Is Home Depot a Good Long-Term Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on HD stock based on 17 Buys and three Holds assigned in the past three months, as indicated by the graphic below. After a 12.23% loss in its share price over the past year, the average HD price target of $423.11 per share implies 29.79% upside potential.
