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Weyerhaeuser Company (WY), D.R. Horton, Inc. (DHI), The Home Depot, Inc. (HD): Three Players for the US Housing Boom

Home Depot

Lastly, once we’ve built and bought a house, we’re going to need home improvement products to complete the package. That’s where The Home Depot, Inc. (NYSE:HD), the largest home improvement retailer by revenue in the United States, comes in. The Home Depot, Inc. (NYSE:HD) notably spent the past three years stomping its only true competitor, Lowe’s, into the ground.

For 2012, The Home Depot, Inc. (NYSE:HD)’s sales volume rose 3.5%, its average sales per square foot grew 6.6% to $318.63, and same-store sales increased 4.6%. These are impressive figures for a big-box retailer like Home Depot. By comparison, Lowe’s same-store sales rose 1.4% last year.

During the fourth quarter, The Home Depot, Inc. (NYSE:HD)’s earnings rose 36% to $0.50 per share, or $774 million. Revenue also increased 13.9% to $18.2 billion. For the first quarter of 2013, analysts expect that growth to continue, with earnings rising to $0.76 per share on revenue of $18.67 billion. If Home Depot exceeds those estimates on May 23, then it will be another confirmation of the growth of the housing market.

The Foolish Bottom Line

In conclusion, if you believe that the U.S. housing market will continue to grow throughout 2013, as most analysts believe it will, then Weyerhaeuser Company (NYSE:WY), D.R. Horton, Inc. (NYSE:DHI) and The Home Depot, Inc. (NYSE:HD) are excellent companies to invest in to capitalize on that continued growth, since they offer three unique perspectives in the industry. However, an increase in mortgage rates, rising unemployment, or a slowdown in domestic economic growth could bring the housing industry to a grinding halt, so investors should still stay alert to these developments and invest accordingly.

The article 3 Stocks for the U.S. Housing Boom originally appeared on and is written by Leo Sun.

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