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Summer is all about sun, sand and construction. With the longer days comes the sights and sounds of pool and patio contractor trucks. Heavy (and small) equipment became a ubiquitous presence in most North American neighborhoods, in an undeniable sign that construction, home renovation and do-it-yourself (DIY) home improvement activities are kicking into high gear.
A pickup in home improvement and homebuilding activity bodes well for home improvement retailers as it pushes demand for their goods and services. Investors interested in capitalizing on the home remodeling activity may consider the following companies and wait for a meaningful pullback to create a margin of safety.
The world’s largest home improvement specialty retailer, Home Depot (HD) offers a wide range of products including building materials, home improvement products, lawn and garden products, as well as home improvement installation services and tool and equipment rentals. It operates 2,300 warehouse-format stores as well as



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