Dow Jones Stocks Down Over 20%: Why Home Depot and McDonald's Are Still Buys

Two Dow Jones stocks, Home Depot and McDonald's, have fallen over 20% from their highs, but are still attractive investment opportunities. These companies have strong competitive positions and long growth runways.

Home Depot is the leading home improvement retailer in the US, with a large store base of over 2,300 warehouse stores and 1,300 SRS Distribution branches. Despite a sluggish housing market, the company has generated $169 billion in revenue over the past year, leaving room for long-term growth.

Home Depot's competitive position remains strong, with its stores functioning as local hubs in residential markets across the US. The company has rolled out express delivery nationwide, aiming to get tens of thousands of items to customers in under three hours, which should support demand when the market recovers.

McDonald's is a highly profitable business, with over 95% of its locations being franchised. This model earns the company high-margin rents and royalties rather than sales from burgers and fries. McDonald's has nearly 220 million active loyalty users, one of the largest loyalty programs in the world.