Dealing with President Trump can be difficult sometimes, and the recent moves around tariffs are proving doubly so. Companies now qualify for refunds on at least some tariffs, but the president has promised to “remember” those who do with vague consequences. Home improvement giant Home Depot (HD) is one of the companies poised to roll the dice on the president’s potential eventual ire, and is seeking refunds. Investors were not exactly pleased, and shares slipped fractionally in Friday’s trading.
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The Supreme Court recently struck down some of Trump’s tariff-related activities, though many others were allowed to stand. And this opened up the floor for some companies to seek refunds accordingly. But Trump also promised he would be specifically on watch for the companies who actually did take advantage of the refund loophole with undetermined and wholly nonspecific consequences.
“Actually, if they don’t do that, they’ve got to know me very well,” Trump noted when asked about companies seeking tariff refunds. Indeed, many companies who have been seeking refunds on the tariffs have announced plans to use the cash to lower prices to consumers, a move that President Trump can ill afford to fight. For its part, Home Depot noted that it has “…received an immaterial amount to date,” but also noted, “WE have assumed that that could provide a significant offset to those costs.”
Pay No Attention to the License Plate Readers in Our Parking Lot
Home Depot faces concerns beyond prices from the customers, who are apparently getting increasingly anxious about the license plate readers in the store’s parking lots. Shareholders are increasingly pressing Home Depot for information about how, when, and why data from the license plate readers is shared, and if this is actually something to be concerned about.
Board members noted that the use of said cameras has already been investigated and no risks have been found. But shareholders are less certain, looking to vote for a proposal to require more investigation, which board members recommend voting against.
Is Home Depot a Good Long-Term Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on HD stock based on 19 Buys and six Holds assigned in the past three months, as indicated by the graphic below. After a 13.49% loss in its share price over the past year, the average HD price target of $379.95 per share implies 21.49% upside potential.
