Home Depot (NYSE: HD) has been a winning stock for investors for a long time, returning 110% over the last five years. It is the leader in the home improvement industry, generating record-breaking sales of $132.1 billion in the recently ended fiscal 2020, much more than its rival, Lowe's.
Even though it's widely known that Home Depot is an outstanding business, the stock has lagged the S&P 500 over the past six months. This seems like a dislocation to me, and signals that investors are being shortsighted by worrying about the business's prospects this fiscal year as stay-at-home restrictions are lifted and consumers will spend less money on their homes.
But the long-term story for Home Depot remains intact, presenting investors with a buying opportunity.
Source Fool.com