Truist Reaffirms Buy Rating as Home Depot Targets Pro Segment with GMS Deal
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According to Truist's repo, the GMS acquisition would provide The Home Depot, Inc. (NYSE:HD) more distribution options and hasten its entry into the competitive professional contractor market.
The potential acquisition reflects Home Depot's ongoing efforts to increase its market share in the professional contractor sector, following the company's recent $18 billion acquisition of SRS Distribution. Although the timing might not be ideal, Truist noted that The Home Depot, Inc. (NYSE:HD) needed to move fast once GMS became available as an acquisition option since the company had planned to focus on debt reduction after the SRS purchase.
A leading American company in the retail home improvement industry, The Home Depot, Inc. (NYSE:HD) offers a broad spectrum of tools, construction supplies, appliances, and services, including fuel and vehicle rentals.
While we acknowledge the potential of HD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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