HD image

Home Depot Inc (HD) Management Not Worried About Mortgage Interest Tax Reform

HD – While some people are worried that tax reforms could hamper Americans’ home improvement projects, Home Depot says those fears are overblown.

Investors are scrambling to ascertain the implications of the GOP tax reform bill on various industries, and Home Depot Inc (NYSE:HD) has become a frequent target of potential worry.

The thought is, if people can no longer claim mortgage interest as a tax write-off, that they’ll postpone or even cancel home improvement plans. But as CNBC reports, Home Depot itself believes those fears are overblown:

“When it comes to deductibility as it relates to mortgage, we believe that’s not as big a deal as people are making it out to be,” Craig Menear, the home improvement retailer’s chairman and CEO, told CNBC in a phone interview.

“Only about 20 percent of Americans deduct mortgage interest, and the numbers show less than 5 percent of folks have a mortgage greater than $500,000,” he said.

Although the U.S. House of Representatives and the Senate are still hashing out the details, the final tax reform bill will likely include changes to mortgage interest deductions.

Instead, Home Depot says it’ll actually benefit from tax reform, specifically from a lower corporate tax rate. “With tax reform, Home Depot would have an immediate and significant benefit for our tax rate. We are in favor of tax reform, if it puts more money in the pocket of the average American and drives GDP growth at a higher rate than previously, we are all in,” Menear noted.

In fact, the company will accelerate the pace of investment in its stores amid the tax reform plans.

Home Depot Inc shares were unchanged in premarket trading Thursday. Year-to-date, HD has gained 37.95%, versus a 19.44% rise in the benchmark S&P 500 index during the same period.

HD currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #1 of 63 stocks in the Home Improvement & Goods category.

HD at a Glance

HD Current POWR Rating™
Overall POWR Rating™
HD Current Price $177.02 0.19%
More HD Ratings, Data, and News

HD Price Reaction

The day of this event (Dec. 7, 2017)
HD Closing Price$179.04 0.66%
HD Volume5,575,497
20.77% from avg
Leading up to this event
HD 1-mo return11.03%
After this event
HD 1-day return1.42%
HD 3-day return0.55%
HD 5-day return0.73%

HD Price Chart

More Home Depot, Inc. (The) Common Stock (HD) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All HD News
Page generated in 1.1585 seconds.