Let's shop through the home retail industry!
Imagine your home without the home furnishings and every tiny accessory which makes your home actually look like a home! The importance of the home retail industry is obviously great. We need the products of this industry in order to convert our houses into homes. The demand for this industry has grown exponentially over the years. It is obvious that high amount of finance is required by companies involved in this industry to cater to the needs of the people. The companies involved in this industry spend millions of dollars in their research and development department in order to come up with products that are in consistent with fashion trends, life styles and the expectations of the consumers. The consumers have seen so much of variety that obviously the consumers associate high expectations with this industry. Hence it is more of an obligation on this industry to live up to the standard of the consumers. According to the analysis of bidnesssetc.com, the two leading brands involved in this industry are The Home Depot, Inc and Lowe's Companies Inc. The Home Depot caters to market share of 58% which makes it the industry leader, whereas Companies Inc is not so far away with a market share of 39%.
In order to understand this industry in a more appropriate manner, it is important to analyze the market structure of the industry. The market structure is clearly oligopolistic in nature because two brands have dominant influence on the market with other small firms serving the industry. Since the two brands are the most dominant ones, it is important for the investor to go through the financials of the two brands in order to pick the one which is most suitable for investment. To do so, the stock performances and ratios would be a useful tool for guidance. The company which best fits the requirements of the investor can be chosen for portfolio investment like bed bath and beyond stock price.
Beginning with the stock performance of The Home Depot has shown a downward trend over the year; it started off at $78.66 in last may but reached to a price $77.36. Despite this fall in stock price, the stock price is hoped to improve in future because of grater sales revenue and market dominance of the company. In addition to this, the company pays a dividend per share of $0.47 which is higher than that paid previously. Hence the company is offering a higher dividend yield. The current dividend yield is 1.88% which is quite reasonable and the company also has a low beat of 0.9 which means that the return offered by the company is less risky due to less volatility. All in all, the company has performed well and is expected to do better in future. Moving on, Lowe's Companies Inc's stock performance has shown an upward trend and has hence experienced an increase in demand for the stock; the stock price was $42.11 in last May but has now reached to a level of $45.36 which means that the company is offering a good margin to the investor to make a capital gain. In addition to this, the company has consistently paid its stockholders a dividend per share of $0.18. The dividend yield offered by the company is 0.72% which is lower than that offered by The Home Depot, Inc. The beta for the company is 1.15 which means that the company's return is more sensitive to the market return and hence high volatility could result in high risk due to high level of variation in the final return. This means that the company's return carry's greater risk than that of The Home Depot, Inc.
All in all, the following can be evaluated that the industry has experienced an increase in demand and hence the investor is advised to invest in the industry. As far as the investment in a particular company is concerned, if the investor is looking for less volatility in returns and wants a more stable higher return, then the investor is advised to go for The Home Depot, Inc, however, for risk taking investors who are in search for higher capital gains, Lowe's Companies Inc would be recommended. For more information regarding your investment decision, please visit bidnessetc.com.
In order to understand this industry in a more appropriate manner, it is important to analyze the market structure of the industry. The market structure is clearly oligopolistic in nature because two brands have dominant influence on the market with other small firms serving the industry. Since the two brands are the most dominant ones, it is important for the investor to go through the financials of the two brands in order to pick the one which is most suitable for investment. To do so, the stock performances and ratios would be a useful tool for guidance. The company which best fits the requirements of the investor can be chosen for portfolio investment like bed bath and beyond stock price.
Beginning with the stock performance of The Home Depot has shown a downward trend over the year; it started off at $78.66 in last may but reached to a price $77.36. Despite this fall in stock price, the stock price is hoped to improve in future because of grater sales revenue and market dominance of the company. In addition to this, the company pays a dividend per share of $0.47 which is higher than that paid previously. Hence the company is offering a higher dividend yield. The current dividend yield is 1.88% which is quite reasonable and the company also has a low beat of 0.9 which means that the return offered by the company is less risky due to less volatility. All in all, the company has performed well and is expected to do better in future. Moving on, Lowe's Companies Inc's stock performance has shown an upward trend and has hence experienced an increase in demand for the stock; the stock price was $42.11 in last May but has now reached to a level of $45.36 which means that the company is offering a good margin to the investor to make a capital gain. In addition to this, the company has consistently paid its stockholders a dividend per share of $0.18. The dividend yield offered by the company is 0.72% which is lower than that offered by The Home Depot, Inc. The beta for the company is 1.15 which means that the company's return is more sensitive to the market return and hence high volatility could result in high risk due to high level of variation in the final return. This means that the company's return carry's greater risk than that of The Home Depot, Inc.
All in all, the following can be evaluated that the industry has experienced an increase in demand and hence the investor is advised to invest in the industry. As far as the investment in a particular company is concerned, if the investor is looking for less volatility in returns and wants a more stable higher return, then the investor is advised to go for The Home Depot, Inc, however, for risk taking investors who are in search for higher capital gains, Lowe's Companies Inc would be recommended. For more information regarding your investment decision, please visit bidnessetc.com.
