Home Depot has been recognized as the fourth largest retailer in the United States based on overall revenue. The firm’s operating strategies allows it to have an advantage against competitors on the best penny stocks to watch list. In order to operate efficiently, Home Depot operates several megastores and mega warehouses. These mega warehouses store a majority of the products and then deliver them to the smaller stores when supplies run low. The firm has more than three hundred and two thousand employees nationwide, making it one of the largest employers in the country. The majority of the company’s revenues come from selling home appliances, tools, building materials, and various types of paints. The prices of stocks have decreased over the past few years due to poor economic conditions but are recovering slowly. The sheer number of Home Depot stores allows the firm to compete effectively against other home improvement retailers on the best penny stocks to watch list.