Home Depot Looks Like a Fat Pitch
With spring in the air and baseball season upon us, I found myself thinking about "fat pitches" that the market is offering investors. In baseball parlance, a fat pitch is when an unfortunate pitcher throws an easy-to-hit pitch right over the middle of a plate, leaving a competent hitter with a fairly easy chance to clobber it out of the park for a home run.
With the recent market turbulence, the market is giving investors some fat pitches to hit. Some great businesses are trading at steep discounts to where they were just a few months ago. One example of such an opportunity is Home Depot (NYSE: HD).
Shares of Home Depot are now down about 27% from their 52-week high amid investor concerns about rising mortgage rates cooling down the housing market and the company's lackluster guidance on its most recent earnings call. While the stock is down 27% in the short term, let's zoom out and focus on the long-term value that Home Depot has created for shareholders.
Source Fool.com
