Is Magic Frhorment’s Home Depot (HD) to change it for its shares? News ad

Home Depot NYSE: HD He wants to change how his clients think about the words “do yourself” (do it yourself). On March 6, the giant to improve the house was launched by Magic Apron, the property of Generative AI, which offers customers a set of tools to obtain round -the -clock answers to their house improvement projects.

The company says: “… it looks like your assistant to a reliable store at hand delivered reliable, accurate answers.” Since the tool is already integrated into the Home Depot Mobile and a website, loyal customers do not need to download a separate application or leave Magic Apron as the main site for its use.

This can change the rules of the game for those who have made more than one trip to the Home Depot store to complete the project. But as an investor, is it the reason to buy shares or a trick that will have a slight influence?

Necessity, but not a destroyer

The launch such as Magic Apron, which, according to Home Depot, follows over the past few months, will become a more common occurrence, since the companies move to the stage of artificial intelligence “show me”. Now that investments have been made, companies such as Home Depot should show investors how and how much II can contribute to their profit.

This is why it is not surprising that the corporation of the Low NYSE: LowThe other half of the duopol to improve the house has launched its own generative artificial intelligence tool, which is its own version of Magic Apron.

Nevertheless, this also means that the deployment is similar to table rates. Generative AI becomes expectation, not destruction, from the experience of buying a client. Nevertheless, you cannot win if you are not at the table, so investors must be satisfied with this.

It is always important to remember that for investment, such as Magic Apron, years may take years to pay off. In his last income report, Home Depot admitted that the housing market would probably remain weak. Therefore, the effectiveness of a magic apron is unlikely to be obvious until the consumer demand for housing will improve.

Tariffs have a greater impact on HD reserves

HD shares looked ready to turn around the corner after their report on income for the fourth quarter in 2025 at the end of February. The revenue, including the second quarter in a row, comparable growth in store sales, was higher compared to last year (YOY), and the higher YOY revenues per promotion (EPS) are careful.

Nevertheless, the shares decreased by more than 8% last month, since the company recognized in its 10-k in the statement that the proposed tariffs of the Trump administration may affect the profitability of the company. Home Depot provided annual growth in EPS, but its pure margin is 9.28% lower than the levels in 2019 by 10.2%.

The company noted that the products that it imports from Mexico, Canada and China “” can significantly negatively affect the cost, demand and profitability of sales of retail products in our or other places. “

With a price and profit ratio (P/E), about 24-fold Home Depot shares are not particularly expensive compared to its three-year average. But investors are in the first place, especially when it comes to retail actions that greatly depend on a healthy consumer base.

Home Depot: Problems and Prospects Analysis Analysis

Over the past year, the performance of the Home Depot shares was undeniably dull. HD shares decreased by 2.79%, despite 2.55% dividend yield. The recent decline in 5.8% in 2025, as of March 26, 2025, meant more pain for shareholders.

However, investors often turn to Home Depot for its sequence. In this regard, actions have proved their strength. Over the past five years, the HD shares brought a wonderful total profitability of 122%, and its growth trajectory looked even more promising for ten or more years.

The strategic positioning of Home Depot for Omnichannel Retail Experience distinguishes it. The presentation of Magic Apron strengthens this experience, enhancing the company’s commitment to innovation. Investors may be sure that the high income of Home Depot income and free cash flow will continue to increase the increase in prices for shares in the bull markets along with significant dividends.

Before considering Home Depot, you will want to hear it.

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