Home Depot Stock: Time to Buy the Dip?
Over its history, Home Depot (NYSE: HD) has been one of the best stocks to own for so many investors. A $1,000 investment in the stock at its initial public offering in 1981 would be worth more than $1 million today. Shares are also up more than 1,000% since the Great Recession in 2008-09 and that doesn't include its growing dividend.
Last year was rough for the housing market, including Home Depot. As a result, the stock lost 24%, underperforming the S&P 500, and it is down again after its most recent earnings report was released last week. The leading home improvement retailer fell 7% last Tuesday after it missed the mark in its fourth-quarter earnings report and offered disappointing guidance.
That outlook called for flat revenue growth, and management sees earnings per share falling by mid-single digit percentages as it plans to spend $1 billion in raises for workers, or about 0.6% of annual revenue.
Source Fool.com
