Is Home Depot Stock a Buy?

Home Depot‘s (NYSE:HD) stock is enjoying a long run of stellar performance, moving higher by about 790% over the previous 10 years alone. However, the stock’s sell-off in February and March as the coronavirus pandemic overtook the country handed the stock its largest decline since the financial crisis.

While shareholders who were able to hold on have recovered their losses and then some, they may be wondering where Home Depot will go next. With no end in sight to the contagion, investors have to decide whether the stock still offers value under current conditions.

A hand holding up a smartphone in the lumber section of a home-improvement store

Image source: Getty Images.

Home Depot and COVID-19

Despite the pandemic, Home Depot has held up fairly well. In the first quarter, net sales increased by 7.1% — and these numbers cover the period between Feb. 3 and May 3. This means that COVID-19 affected approximately half of the quarter. Investors have noticed, sending the

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Could Home Depot Be a Millionaire Maker Stock?

Home Depot (NYSE:HD), the world’s largest home improvement retailer, has been an excellent stock to own over the past decade. An investment of roughly $113,000 10 years ago would be worth a million dollars today, equating to a compounded annual return of 24.4%. This trounces the S&P 500, which produced annual returns of 12% during the same time period.

Although the company’s sales grew at a 5.2% annual clip over the last 10 years, earnings rose 15.5% per year, showcasing management’s adeptness at building a more efficient and cost-effective organization that focuses on the bottom line. Investors looking to get rich from future returns that resemble the past need to consider some important factors. Let’s take a look.

crown sitting on pile of cash

Image source: Getty Images.

Coronavirus pandemic

When the coronavirus pandemic took hold of the United States, Home Depot was deemed an essential business. The company’s culture really shined through, as

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