The frenzy of sales from Black Friday and Cyber Monday has died down at home improvement giant Home Depot (HD), and now, the more sporadic pre-Christmas sales are getting started. In fact, Home Depot recently fired up a new program that connects shoppers to goods in a whole new way, using Instacart (INSCV) for fulfillment. The news did little to help share prices, though, as shares of Home Depot slipped modestly in Tuesday morning’s trading.
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Home Depot teamed up with Instacart to make delivery a possibility in over 175 Home Depot locations. The bad news—and the news that may have made this point so limited in impact that it did not help share prices at all today—is that the partnership is only available in Canada.
But for those who are within the bounds of the partnership, they will be able to order Home Depot products through Instacart, and have them delivered in as little as an hour. This should be a game-changer for home improvement projects of all stripes. You will no longer need to drive back and forth when you discover you have forgotten some crucial part. There are some limits, reports suggest, as the “Big & Bulky fulfillment solution” only handles items up to 60 pounds.
Fraud Investigation
We have heard before of fraud being perpetrated against Home Depot stores, but the other way around is much less heard of. However, Levi & Korsinsky, a law firm, is starting up an investigation into Home Depot’s potential fraud against shareholders.
Levi & Korsinsky is looking for information about the potential “…violations of federal securities laws” Home Depot may have carried out. Reports suggest that the fraud claims are connected to Home Depot’s recent third-quarter earnings report, where Home Depot missed expectations for the third quarter thanks in some part due to declining demand. This led to Home Depot altering full-year forecasts. But Levi & Korsinsky think more may be happening here, apparently, and are thus investigating.
Is Home Depot a Good Long-Term Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on HD stock based on 18 Buys, five Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 16.77% loss in its share price over the past year, the average HD price target of $409 per share implies 15.93% upside potential.
