Is Home Depot Stock a Buy?
Sales are surging at Home Depot (NYSE: HD), but that does not automatically make its stock a buy. The home improvement retailer is benefiting substantially as consumers have fewer options to spend their income. The stock is already up 26% year to date, so it could be that the recent surge is baked into its current price.
And there is a risk that with all that home-improvement spending done by consumers during the pandemic, there will be home-improvement fatigue, or a limited amount of projects left to be done around the home. That could potentially depress sales in the near term when the pandemic fades away, and consumers start having more options for their disposable income.
To determine whether or not the stock is a buy, let's look at the company's long-term prospects and then compare it with some valuation metrics.
Source Fool.com
