Earlier this month, we brought you the story of Ysabel Jurado, a member of the Los Angeles City Council who took a stand against home improvement giant Home Depot (HD), and its plan to bring a new store, along with jobs, to the area. Her vociferous stance proved tough for some to follow, including those who wondered if the Home Depot snub kicked off a new era in Los Angeles. Home Depot investors seemed a bit concerned here, as shares slipped fractionally in Thursday afternoon’s trading.
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Basically, noted a column in the Westside Current, Jurado’s stance against Home Depot may have a larger knock-on effect than first expected. The Home Depot location intended to go into a former Macy’s (M) store, leaving behind an empty structure that “…feels like a prison, but with less charm.” The parking lot stands empty, and the mall that the store was attached to is limping along.
Besides that, some question whether this is the start of the “political allegiance era,” in which the only stores permitted to operate are those that pass political muster. This leaves stores—and Home Depot would be no exception here—in a tenuous position, always one false move away from shutdown, license issues, or even property zoning or tax problems. And it will be remarkably difficult for Home Depot, or any other retailer, to operate in such an environment.
Giving Back to the Doggos
We also know that Home Depot is a surprisingly welcome friend to the four-legged. The last few weeks have been alive with stories of dogs in Home Depot stores, checking out the sights, smells, and suchlike with their owners. But Home Depot also apparently gives back to the dogs as well, as evidenced by a recent wheelchair build.
Yes, a wheelchair. For a dog. The dog in question, Zeke, was a three-legged dog who was newly adopted. Zeke’s mom went into Home Depot looking for some new material, planning to build a kind of wheelchair for the dog. The Home Depot staff at that location stepped in, and not only got the materials together, but also started building the mechanism there and then. A little testing help ensured the device worked, and a newly-mobile Zeke headed off into the sunset.
Is Home Depot a Good Long-Term Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on HD stock based on 20 Buys and six Holds assigned in the past three months, as indicated by the graphic below. After a 3.29% rally in its share price over the past year, the average HD price target of $447.96 per share implies 9.3% upside potential.
