Home Depot, TJX, Lockheed Martin – Magic Post

Despite its volatility in 2024, the US dollar ended the year on a high note. There are several reasons for the dollar’s strength, not the least of which is enthusiasm for the pro-growth policies of the incoming Trump administration.

However, most of the dollar’s strength can be summed up in the statement that the United States is the best home in a bad economic region. This means that the US economy is outperforming the G10 countries.

This is a bullish outlook for 10-year Treasuries but could pose a headwind for some stocks in 2025. A strong dollar coupled with persistent inflation may deter the Fed from cutting interest rates. In fact, this combination may lead to an increase in interest rates at some point.

But this article is about opportunities, not obstacles. So, let’s take a look at three stocks that are likely to benefit from a stronger US dollar in 2025.

Home Depot today

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Home Depot

$392.86 -2.28 (-0.58%)

(As of 12/27/2024 at 05:45 PM ET)

52 week range

$323.77

▼

$439.37

Dividend yield

2.29%

P/E ratio

26.69

Price target

$426.00

Home Depot New York Stock Exchange: HDIt is one of the major importers in the country. A stronger dollar would make imports cheaper, boosting the home improvement giant’s bottom line. However, the specter of definitions looms over this story. No one knows for sure the extent of President-elect Trump’s tariff policies, but it’s certainly one to watch.

On the other hand, it only took a small drop in interest rates for investors to see some green shoots in the housing market. But even if current homeowners aren’t moved to list their homes, the supply side of the equation is likely to improve. The homebuilding sector was strong in 2024, and this growth is likely to continue in 2025.

HD stock is up 14% this year. That’s good for most years, but it represents roughly half the growth in the S&P 500. Analysts have a consensus price target for HD stock of $426. This represents an increase of approximately 8%. However, several analysts have raised their price targets since the company’s earnings report in November.

This growth comes on top of a dividend that has grown at an average rate of more than 11% in the past three years and currently pays $9 per share annually.

TJX Companies Today

TJX

TGX Enterprises

$123.94 -1.07 (-0.86%)

(As of 12/27/2024 at 05:45 PM ET)

52 week range

$91.31

▼

$128.00

Dividend yield

1.21%

P/E ratio

29.16

Price target

$130.89

It’s been a mixed bag for Retail stocks In 2024, but the one group that stands out is the stock of off-price retailers such as TJX Inc. Companies New York Stock Exchange: TGX. These companies have a loyal customer base at any given time, but they really stand out when consumers are looking for value.

This is usually the case when there is a stronger dollar because it leads to inflation. Tariffs and trade wars aside, it will take time to overcome the current inflation in the economy. As a consumer, you know that prices can rise quickly, but they don’t fall nearly as quickly if they do at all. In most cases, the economy must grow enough to allow consumer incomes to rise to the level at which they can absorb higher prices.

However, while inflation is a challenge for consumers, it is an opportunity for investors. When it comes to TJX stock, all you have to do is follow the clients. Value seeking plays a direct role in a company’s value proposition. This is why analysts are raising their price targets for TJX stock even though it is already up 32% in 2024.

Lockheed Martin today

LMT

Lockheed Martin

$488.97 -1.01 (-0.21%)

(As of 12/27/2024 at 05:45 PM ET)

52 week range

$413.92

▼

$618.95

Dividend yield

2.70%

P/E ratio

17.70

Price target

$612.29

Even before the announcement that President-elect Trump would create the Department of Government Efficiency, many lawmakers had been eyeing the country’s massive defense budget as where cuts might be necessary.

That might look bearish for defense stocks like Lockheed Martin New York Stock Exchange: LMT. However, Lockheed is not just another defense stock. It’s the country’s leading defense contractor, which means there are still plenty of government contracts for the company. The company also has contracts with other foreign governments, and revenue from those contracts will be more valuable as the income is converted to US dollars.

In addition, the company is likely to benefit from lower production costs from cheaper imported materials. Ideally, this would allow Lockheed to offer more competitive prices and win additional contracts.

Analysts give LMT stock a consensus target price of $612.29, which is 25% higher than its closing price on December 27, 2024.