It's difficult to exactly time the market when considering whether to buy or sell a stock. Fortunately, stock traders with a long-term investment horizon don't need to put all that much emphasis on timing a stock decision. Long-term investors just need to do their stock-buying homework to better understand the business they might want to buy stock in. This research will help determine if a company's prospects are brightening or dimming. This type of homework is needed even for large, well-established companies.

Over several decades, Home Depot (NYSE: HD) has grown into a major home improvement retailer with a track record of strong performance for shareholders. Lately, however, Home Depot's stock is lagging the broader market. Over the past year, its total return of 10.7% is well below the S&P 500's comparable 25.7% total return.

Is this recent underperformance a warning signal to avoid Home Depot shares? Or is it a buying opportunity?

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Source Fool.com