Nine Children Dead Leads Home Depot (NYSE:HD) to Stage Recall
Elevate Your Investing Strategy:
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The recall focuses on three different lines of above-ground pools, noted a report in Newsweek: Bestway, Intex, and Polygroup. These pools have been involved in the drowning deaths of nine children, the report noted, and that may be a risk too far for most parents to stomach.
It may sound odd to call an above-ground pool a 'drowning risk,' because literally every pool is a drowning risk in one way or another. But, the report noted, the Bestway, Intex and Polygroup pools are a different matter. These pools have 'compression straps' that are around the sides of the pool, and younger children can use these as a foothold to climb up and gain access to the pool itself. This puts the tykes at a particularly high risk of drowning as they can gain access to the pool without adult supervision. Since the deaths are related to children between 22 months and three years old, it becomes clear why the recall notices went out.
Mexican Distribution Center Closed. No, Not That Mexico
Meanwhile, Home Depot is also reportedly leaning up its supply chain a bit, with plans to shutter a distribution center in Mexico. Interestingly, it is not the Mexico you may be thinking of. The distribution center is in Mexico, Missouri.
A reason for closing the distribution center was not given, but Home Depot noted it was '…focused on doing the right thing and supporting our associates with separation packages, transitional benefits and job placement support. Impacted associates have been encouraged to apply to other roles within the company.' Given that the closure is set to impact 61 employees, it is a safe bet that many of them will be able to find new roles within Home Depot.
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 six Holds assigned in the past three months, as indicated by the graphic below. After a 1.23% rally in its share price over the past year, the average HD price target of $428.12 per share implies 16.95% upside potential.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 hours ago
- Yahoo
The two ways Trump's tariffs on Canada could collapse — despite his fight to keep them
WASHINGTON, D.C. — Time's up. On Friday, U.S. President Donald Trump raised the tariff rate on Canadian goods not covered under the Canada-United States-Mexico Agreement (CUSMA) from 25 to 35 per cent, saying they 'have to pay a fair rate.' The White House claims it's because of Canada's failure to curb the 'ongoing flood of fentanyl and other illicit drugs.' U.S. Customs and Border Protection (CBP) data, however, show that fentanyl seizures from Canada make up less than 0.1 per cent of total U.S. seizures of the drug; most smuggling comes across the Mexican border. But the future of Trump's policy also rests on shaky ground, and the tariffs could come crashing down even if Canada can't reach a deal at some point. Imposed through a controversially declared 'national emergency' under the International Emergency Economic Powers Act (IEEPA), the tariffs come with essentially three paths for relief to Canadian exporters and their American customers: the courts and the economy. And there's always the wildcard: that the president changes his mind. Without relying on that, National Post looks at two very possible ways out of all this: The courts: There is a big question hanging over whether Trump's tariffs are even legal under the U.S. Constitution, which gives Congress powers over trade. Trump has bypassed that by claiming he's using presidential IEEPA emergency powers. On Thursday, the Washington, D.C.-based Federal Circuit Court of Appeals convened an en banc hearing for oral arguments in challenges to Trump's use of IEEPA. The 11 judges questioned whether the law meant for sanctioning adversaries or freezing assets during emergencies grants Trump the power to impose tariffs, with one judge noting, 'IEEPA doesn't even mention the word 'tariffs.'' The White House, meanwhile, says the law grants the president 'broad and flexible' emergency powers, including the ability to regulate imports. 'Based on the tenor and questions of the arguments, it appears that the challengers have the better odds of prevailing,' Thomas Berry, the CATO Institute's director of the Robert A. Levy Center for Constitutional Studies, said in a statement. 'Several judges peppered the government's attorney with skeptical questions about why a broad term in IEEPA like 'regulate importation' should be read to allow the president to unilaterally impose tariffs.' Trump's lawyers claim his executive order provides the justifications for the tariffs — in Canada's case, fentanyl. But Berry said 'those justifications would not matter if IEEPA simply does not authorize tariffs in the first place. That is the cleanest and simplest way to resolve this case, and it appears that the Federal Circuit may be leaning toward that result.' A decision is expected this month, and if it's a resounding push back from the judges' panel, said Andrew Hale, a senior policy analyst at Heritage Foundation, the Supreme Court may not even take up the case. If so, he says, 'these Liberation Day tariffs and everything that's been imposed under emergency legislation, IEEPA, that all evaporates.' At that point, the White House would not be able to declare across-the-board tariffs against countries. Instead, it would have to rely on laws allowing tariffs to be imposed on specific products that are found to threaten U.S. national security, like those currently imposed on Canadian steel and lumber. The economy: The other path to tariff relief is through economic pressure. If Americans start to see higher prices and economic uncertainty, and push back at the ballot box — or threaten to do so — it could force Trump to reverse course. The most recent figures show that U.S. inflation, based on the Consumer Price Index, hit around 2.7 per cent in July. That's a slight rise, fuelled by rising prices for food, transportation and used cars. But it's still close to the Federal Reserve target of two per cent. U.S. unemployment rose slightly to 4.2 per cent in July, while far fewer jobs were created than expected, and consumer confidence rose two points but is still several points lower than it was in January. Overall, most economists agree that risks of a U.S. recession over the next 12 months are relatively low, but skepticism over growth remains high. 'Our outlook is for slower growth in the U.S., but no recession,' said Gus Faucher, chief economist of The PNC Financial Services Group. He notes that the 'tariffs are going to be a drag' because they are a tax increase on imports. Economists have said price inflation from tariffs is not yet being felt in the U.S. but believe it's inevitable. 'Trump's tariff madness adds a great deal to the risks of a recession,' said Steven Hanke, professor of applied economics at Johns Hopkins University who served on President Ronald Reagan's Council of Economic Advisors. 'With tariffs, Americans are going to be paying a big new beautiful sales tax on goods and services imported into the U.S., and taxes slow things down. Taxes don't stimulate.' It is surprising that higher U.S. prices haven't happened yet, said Jonathan Gruber, chairman of the economics department at the Massachusetts Institute of Technology. But he explained that it's likely a reflection of the duration of contracts and the fact that import sellers haven't yet put up prices — 'because they were hoping it wouldn't be real, like they'd wake up from this nightmare.' 'I think we start to see the effect on prices by the end of the year,' said Gruber. The trouble for Canada, however, is that the Canadian economy is starting from a much weaker position, with higher unemployment, lower consumer confidence, and a slowing GDP, on top of the trade tensions. So, trying to wait things out for the U.S. to feel the pinch will be even more painful for Canadians. And any American downturn will also reverberate north. 'As Uncle Sam goes, so goes Canada,' said Hanke. Gruber agrees with that, but with a caveat. 'It's all bad in the short run and good in the long run,' he says. He believes the U.S. is 'weak and getting weaker' and that Canada should start taking advantage of how the U.S. is making opportunities for other countries to invest in themselves. 'We're not investing in our future. We're killing our education. We're killing our research. We're not allowing in immigrants,' he said, explaining the weakening of the U.S. economy. 'We're basically setting the stage for long-run economic slower growth.' Meanwhile, China is doubling down on investment, research and other longer-term policies. 'Canada and other countries need to do the same,' Gruber said. And as for when a backlash could lead to a reversal in the U.S., Gruber points to two factors. 'It's got to be high inflation, and Trump's opponents need to make sure that the voters understand that's Trump's fault.' National Post tmoran@ Former U.S. ambassador on Canada negotiating with Trump: 'You may not have the best hand' Carney 'disappointed' after Trump hits Canada with higher tariffs Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our newsletters here.
Business Insider
2 days ago
- Business Insider
Home Depot Stock (NYSE:HD) Gains on New Advertiser Partnerships
The trend of retailers like home improvement giant Home Depot (HD) starting their own media network is on the rise, and not without reason. After all, shoppers in a store are a captive audience looking for a certain kind of product, so advertising that product in-store is a great way to narrow the gap between ad contact and purchase. Home Depot, meanwhile, is stepping up its own media network operations with a new partnership, and investors were reasonably pleased with this comparatively simple move. Shares were up modestly in Friday afternoon's trading. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Home Depot got together with Yahoo, now mostly owned by Apollo Global Management (APO), to help bolster the range of advertisers that can get in on the Orange Apron Media network, Home Depot's own media network. Home Depot has had a media network since 2018, reports noted, but it has only been Orange Apron since March 2024. In fact, current reports suggest that Orange Apron is the largest home improvement operation of its class. Recently, Home Depot branched out its media operations, looking to get products that do not necessarily sell within the retailer itself, but are adjacent. So instead of looking only at advertisers that sell tools or patio furniture, Home Depot is also taking ads from home security services or insurance providers. And the partnership with Yahoo opens up access to Yahoo ConnectID, a Demand Side Platform (DSP) that allows for better matching between users and potential products. Still a Leader Word from the Numerator Home Improvement Tracker report, which we have heard from previously, says that Home Depot is still a powerhouse in the market. In fact, Home Depot has 28% of the market to itself. The next highest portion of that market is Lowe's (LOW), which comes in at 18%. As for what shoppers at Home Depot are most in the market for, the leader is home improvement power tools, followed closely by outdoor power equipment like lawn mowers. Despite the sheer number of options in this field, the fact that Home Depot has as much of the market as it does suggests that it offers a unique experience that keeps shoppers coming back. Is Home Depot a Good Long-Term Buy? Turning to Wall Street, analysts have a Strong Buy consensus rating on HD stock based on 18 Buys and six Holds assigned in the past three months, as indicated by the graphic below. After a 3.4% rally in its share price over the past year, the average HD price target of $428.12 per share implies 15% upside potential.
Yahoo
2 days ago
- Yahoo
Home Depot vs. Lowe's: Which DIY Giant Wins?
Key Points Home Depot and Lowe's have struggled to drive growth in an era of historically high interest rates. Both companies do a fantastic job of targeting DIY customers, but the pro segment is becoming more important to long-term success. Investors should consider the valuations of these stocks to inform their decision-making process. 10 stocks we like better than Lowe's Companies › The retail sector is absolutely gigantic, with trillions of dollars sloshing around the economy as transactions occur to buy various products and services. Within this massive market, the home improvement industry is also big, with two major players going head-to-head to win over customers in a $1 trillion market. Home Depot (NYSE: HD) and Lowe's (NYSE: LOW) are the top companies that investors can choose between if they want exposure to this critical part of the economy. They both have competitive strengths, are consistently profitable, and return a lot of capital to shareholders. So, which of these DIY giants is the better retail stock to buy? Recent struggles With their sprawling networks of massive warehouse stores, these two businesses are leading choices among DIY customers who want to tackle upgrades and renovations. But it's been a difficult period, as higher interest rates pressure the housing market, discouraging these people from spending on big-ticket items. Both management teams discussed the weakness in discretionary purchase activity. However, both Home Depot and Lowe's also target professional customers, like contractors, electricians, and roofers, who handle complex projects. This group is faring better than DIYers. Home Depot has the edge with pros, as 50% of its revenue comes from this valuable customer cohort that typically spends significantly more than DIYers. With its 2024 $18.3 billion acquisition of SRS Distribution and recent $4.3 billion purchase of GMS, this business is pushing aggressively to dominate the pro market. This gives it a huge leg up on Lowe's, which has just a 30% share from pros. Focus on the big picture The past couple of years have proven just how much these two companies are dependent on favorable macro conditions to succeed. However, by zooming out, investors will understand that there are reasons to remain optimistic over the long term. The overall industry provides a favorable backdrop for these businesses. For starters, the median age of a home in the U.S. continues to increase over the years. Older houses will require more upkeep and maintenance. Then there's the supply and demand imbalance in the domestic housing market, as estimates point to an inventory shortage of millions of homes. This constraint can discourage people from wanting to buy new homes, forcing them to stay in their existing dwellings and invest in renovations. And lastly, due to the huge increase in the price of homes in the past five years, there are trillions of dollars in untapped equity. Once the macro backdrop becomes more accommodating, there could be huge pent-up demand for Home Depot and Lowe's, especially from DIY customers who have delayed upgrades. High quality or better valuation? In my view, Home Depot is the higher-quality business. It operates with much greater scale, as its trailing-12-month revenue of $163 billion is almost double the $83 billion Lowe's generated. And likely partly due to its stronger position among pros, Home Depot registers a higher average operating margin over the past decade. For what it's worth, Lowe's is trying to close the gap. Its CEO, Marvin Ellison, was an executive at Home Depot before his current gig. And he's focusing on expanding the company's pro division, with a bolstered loyalty program and improving omnichannel experience. Lowe's could have more sales upside simply because it's smaller than Home Depot, and it could target the low-hanging fruit by copying its larger peer's strategy. As of July 28, Lowe's shares trade at a price-to-earnings ratio of 19.1. That represents a notable 25% discount to Home Depot, which trades at a 25.6 multiple. If I had to guess which stock will generate a better return over the next five years, Lowe's looks like the clear answer. Should you invest $1,000 in Lowe's Companies right now? Before you buy stock in Lowe's Companies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lowe's Companies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,629!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,098,838!* Now, it's worth noting Stock Advisor's total average return is 1,049% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool recommends Lowe's Companies. The Motley Fool has a disclosure policy. Home Depot vs. Lowe's: Which DIY Giant Wins? was originally published by The Motley Fool Sign in to access your portfolio
