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. 

Continue reading

Source Fool.com