The HD stock price decline: worse than the market

The price of HD stock has fallen from around $410 to $300 this year, which is worse than the performance of the overall market as measured by the S&P, which has declined by 16%.

CHINA - 2022/07/25: In this photo illustration, the American multinational home improvement retail ... [+] corporation Home Depot logo is displayed on a smartphone screen. (Photo Illustration by Budrul Chukrut/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty Images
Looking at this paragraph, it is clear that Home Depot is doing well in China. The company's logo is prominently displayed on a smartphone screen, indicating that it is a popular choice among consumers. This is good news for the company, as it looks to expand its operations in China. The country is a key growth market for Home Depot, and it is encouraging to see that the company is doing well there.

As we approach the end of the fiscal year, it is clear that Home Depot has had a strong year.

At current prices, we believe Home Depot's stock (NYSE: HD) could see a rebound. The company's stock has declined 28% year-to-date (YTD), underperforming the broader indices, with the S&P falling 16% over the same period. Despite macro headwinds plaguing the entire retail space, the company saw continued interest from consumers and reported better-than-expected second-quarter results, while reaffirming its full-year guidance. With a current price-to-earnings ratio of around 18, which is much below the trailing 10-year average multiple of 23, it looks like Home Depot stock still has room for major expansion.

Home Depot is a company that I believe is positioned for success in the coming years. Despite challenges in the current environment, I believe that the company's strong fundamentals will help it weather the storm and emerge even stronger. I particularly like the company's focus on the home improvement market, which I believe is a vast and growing market with immense potential. I would recommend keeping an eye on Home Depot stock as a potential investment opportunity in the coming years.

Looking ahead to 2022, Home Depot's management is expecting sales growth of around 3% year-over-year to reach approximately $156 billion. Additionally, they anticipate same-store sales to increase by 3% compared to 2021. Although earnings growth is expected to slow to a mid-single-digit percentage, this is still impressive given the double-digit annual gains registered in fiscal 2020 and 2021. Additionally, Home Depot's operating margin is projected to be 15.4% - the same as last year.

At Home Depot, we're always looking for ways to improve the customer experience. Our previous coverage of the company's stock is a great way to keep track of our progress over time. We're committed to providing the best possible service to our customers, and we'll continue to work hard to make sure that our stock is a reflection of that commitment. Thanks for following us!

It's always helpful to see how a company's peers are faring on key metrics. This allows investors to gauge how a company is performing relative to its peers and helps identify potential areas of competitive advantage or disadvantage. The website provides valuable peer comparisons for companies across a variety of industries. For example, investors can compare Home Depot's performance on key metrics to that of its peers in the retail industry. These comparisons can be a valuable tool for identifying potential investments and areas to focus on when conducting due diligence.

There is no doubt that the stock market is in a volatile period. With inflation rising and the Fed raising interest rates, many companies' stocks have taken a hit. Home Depot, in particular, has fallen 28% this year. Can it drop more? Looking at how it has performed in previous market crashes, it is possible that Home Depot's stock could take another hit. However, it is also possible that the company will weather the storm and emerge relatively unscathed. Only time will tell.

If you're looking for a more balanced portfolio, our high-quality portfolio and multi-strategy portfolio have both outperformed the market since 2016. With returns of 175% and 262%, respectively, these portfolios offer a great way to diversify your investments and potentially maximize your returns.

HD Return Compared With Trefis Multi-Strategy Portfolio  Trefis
The HD Return Compared With Trefis Multi-Strategy Portfolio is a great way to diversify your investment portfolio. This portfolio uses a combination of strategies to maximize returns while minimizing risk.

I see the Trefis Price Estimates as a valuable resource for investors. The estimates provide a snapshot of how a company's stock price could perform in the future, based on current trends. This information can be helpful in making investment decisions.