1 Bright Green Flag for Home Depot Stock
Home Depot (NYSE: HD) was posting strong gains throughout the worst days of the pandemic. Revenue jumped 19.9% in fiscal 2020 and 14.4% in 2021, thanks to consumers shifting their spending to home renovation projects. This impressive fundamental performance helped drive the stock up 90% from the start of 2020 to the end of 2021.
But this massive retailer has seen its business slow down dramatically in recent quarters. And the stock, now off 27% from its peak price, is trading at a price-to-earnings ratio of 18.9, which is below its trailing-five-year average.
Investors might want to take a closer look at adding this business to their portfolios. That's because there's one major green flag for Home Depot that will get anyone excited about the company's prospects.
Source Fool.com
