Home Depot Is Down 25% From Its High. Time to Buy?
The past few months haven't been particularly favorable to big-box retailers. Waning customer demand in the face of high inflation, coupled with a looming recession, is pressuring revenue growth. Heightened promotional activity to get rid of rising inventory stockpiles also hurts profitability. This is all happening as the important holiday shopping season gets under way.
Home Depot (NYSE: HD), whose business is actually performing quite well, hasn't been spared from the market's pessimism. With the stock off 25% from its peak (as of this writing), which was set in Dec. 2021, investors should take a closer look at buying Home Depot today.
In its fiscal 2022 third quarter, Home Depot posted revenue of $38.9 billion, up 5.6% year over year, and diluted earnings per share (EPS) of $4.24, up 8.2%. Same-store sales, a closely watched metric for retailers, jumped 4.3%. The business beat Wall Street's expectations on both the top and bottom lines.
Source Fool.com
