We recently published a list of 15 Stocks ChatGPT Predicts Could Make You Wealthy in 10 Years. In this article, we are going to take a look at where Home Depot, Inc. (NYSE:HD) stands against other stocks ChatGPT predicts could make you wealthy in 10 years.
2024 was a stellar year for the US markets, driven by a strong performance in the technology sector. The broader market expanded by more than 23% during the year, marking two consecutive years of over 20% growth—something that had not happened in nearly three decades.
READ ALSO: 10 Best Single Digit Stocks To Buy Now and 10 Under-the-Radar Stocks with Massive Upside for 2025.
The stock market benefited from a resilient economy that avoided recession, declining interest rates, and waning inflation. Analysts are projecting continued growth in 2025 amid strong economic data and optimism about a business-friendly Trump administration returning to power.
In a note on December 30, Wedbush Securities analyst, Dan Ives, wrote that he expects a 25% surge in tech stocks as the new government focuses on slashing unnecessary regulations. On the other hand, Todd Rosenbluth, the head of research at VettaFi, anticipates that ETFs specializing in small-caps will make gains as investors broaden their market exposure with interest rates dropping.
While the general outlook for 2025 is encouraging, analysts are also cautious about the potential downsides of the new administration’s promised tariffs. Following his election victory, Trump has vowed to impose steep tariffs on imports from Canada, China, and Mexico, which could increase manufacturers’ costs. Ongoing geopolitical tensions in different parts of the world could also hurt the stock market.
Can ChatGPT predict the stock market?
A growing number of investors are turning to ChatGPT for stock suggestions. According to a 2023 survey, around 53% of the Millenials and 50% of Generation Z respondents had used the AI chatbot for investing advice. In contrast, older Americans were skeptical of the recommendations, with only 25% of the Baby Boomers saying they had used ChatGPT to buy stocks.
While most financial analysts question the reliability of ChatGPT for providing accurate and up-to-date information, Alejandro Lopez-Lira, a finance professor at the University of Florida, says that the chatbot may be able to predict stock movements. He used the platform to parse negative and positive headlines for stocks and predict returns for the following day. Lopez-Lira was surprised to find how good the results were.
Whether or not tools like ChatGPT are effective in recommending stocks and predicting their trajectory remains a debate. However, they can be useful for investors researching the companies they want to invest in or when looking up definitions of financial terms they are unfamiliar with.
Methodology
We prompted ChatGPT to predict 15 stocks that could make investors wealthy in 10 years and cite the reasons behind its analysis. The stocks are ranked in this article in the same order as provided by ChatGPT. The platform said it based its rankings on several factors, including market dominance, revenue and earnings growth, innovation, and industry growth potential.
For perspective, we have also shared the hedge fund sentiment toward each stock, based on Insider Monkey’s database of over 900 prominent hedge funds as of Q3 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A home improvement store overflowing with a variety of products and supplies.
The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 82
The Home Depot, Inc. (NYSE:HD) is an American home improvement retail company that sells building materials, lawn and garden products, home improvement and decor products, tools, construction equipment, and other materials used for repair and maintenance. It operates 2,345 retail stores and approximately 780 branches across all 50 states, the District of Columbia, other U.S. territories, 10 provinces of Canada, and Mexico.
In June 2024, the company completed the acquisition of SRS Distribution, Inc., one of the fastest-growing building products distributors in the U.S., for approximately $18.25 billion. The move is expected to raise The Home Depot, Inc. (NYSE:HD)’s total addressable market to around $1 trillion, by helping accelerate growth with the residential professional customer.
During the Q3 2024 earnings call on November 12, the company reported that SRS generated $2.9 billion of revenue during the third quarter, and was on track to deliver $6.4 billion in sales contribution over seven months. Overall, the company-wide revenue was posted at $40.2 billion, up 6% year-over-year. However, comparable sales declined 1.3%. Its stores in the U.S. also had negative comps of 1.2%.
During the first nine months of 2024, The Home Depot, Inc. (NYSE:HD) experienced pressures on larger remodeling projects because of the general macroeconomic uncertainty and a higher interest rate environment. Despite the challenges, the financial performance in Q3 was better than what the management had anticipated, reflecting the company’s resilience.
The Home Depot, Inc. (NYSE:HD) is also committed to shareholder returns. On November 14, it declared a third-quarter dividend of $2.25 per share to be paid on December 12. Wall Street analysts are bullish on The Home Depot, Inc. (NYSE:HD) with a consensus Buy rating. It is among the stocks ChatGPT predicts could make you wealthy in 10 years.
Overall, HD ranks 12th on our list of stocks ChatGPT predicts could make you wealthy in 10 years. While we acknowledge the potential of technology companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than HD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.