Recent selloff has done some damage, but that can be a buying oppertunity
Recent selloff has done some damage, but that can be a buying oppertunity
We have added the HD shares to our Portfolio Selector Focus List. Home Depot is the world’s largest home-improvement retailer, with sales of $151 billion for the fiscal year ended January 30, 2022. HD shares have declined about 30% so far in 2022 on concerns consumers will moderate home-improvement spending after two years of aggressive repair and remodeling, and that higher interest rates will slow the housing market and economy. While those concerns are real, we expect the significant underinvestment in U.S. housing, and a catch-up phase as the Millennial generation enters the market, will serve as a sales driver for years. HD’s sales, margin, and EPS performance supports our view that the company is well positioned to deliver earnings growth and market-share gains. We believe the shares stand out for diversified investors looking for exposure to discretionary retail.