Amazon outperformed Home Depot in 2024, making it a more attractive investment option.
From Nasdaq: 2025-01-01 05:45:00
In 2024, Amazon’s stock soared by 45%, outperforming the S&P 500. Home Depot, on the other hand, only saw a 12.4% increase due to a slowdown in DIY spending. Both companies are leaders in their industries, making them potential long-term investments worth considering.
Amazon dominates the e-commerce market with a 40% share in the U.S., generating $95.5 billion in North American revenue. The launch of Amazon Haul, a mobile-only platform, aims to maintain its lead against competitors. Additionally, Amazon Web Services (AWS) saw a 50% increase in operating income, positioning the company for continued growth.
Home Depot, with over $40 billion in sales, faces challenges as same-store sales fell by 1.3% in 2024. The company expects a 2.5% decline in comparable sales for the fiscal year due to a slowdown in larger remodeling projects. Despite leading in DIY home improvement, Home Depot’s stock struggles to show significant growth.
With a forward price-to-earnings ratio of 35.7, Amazon may seem pricier than Home Depot’s 24.8 ratio. However, Amazon’s dominance in e-commerce and growing cloud computing business make it a more attractive investment option. On the other hand, Home Depot’s uncertain outlook in the DIY market suggests Amazon is the better buy for now.
Investors have a second chance to benefit from potentially lucrative opportunities with “Double Down” stock recommendations from analysts. Companies like Nvidia, Apple, and Netflix have shown remarkable returns over the years. By seizing this opportunity, investors can capitalize on future growth potential in the market.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, sits on The Motley Fool’s board of directors. The Fool has positive positions in Amazon, Goldman Sachs, Home Depot, and Walmart, recommending the latter. Investors are encouraged to consider these insights but should conduct their research before making investment decisions.
Read more at Nasdaq: Best Stock to Buy Now: Amazon vs. Home Depot