Is Home Depot Stock Recession-Proof?
The stock market sell-off in 2022 has mirrored the decline in gross domestic product (GDP), a key metric that measures the value of goods and services produced by the economy. In the first quarter, real GDP (adjusted for inflation) fell 1.6%.
Although the economy hasn't officially entered recession territory yet, it's moving in that direction. The National Association of Home Builders (NAHB) expects real GDP to decline by at least 1.5% for the second quarter.
About 90% of Home Depot's (NYSE: HD) business comes from homeowners, either directly from do-it-yourself customers or indirectly through professional contractors. When the economy is weak or housing prices are falling, it can have a negative impact on the company's sales.
Source Fool.com