Home Depot’s (NYSE: HD) stock price decline is not yet over, with the Q1 results and guidance update failing to reinvigorate market confidence. The likely outcome is that this stock falls to the low end of its long-term trading range, where it becomes irresistibly attractive. Even now, trading near $300, the stock is at a nearly 3-year low, valued at the low end of its historical price-to-earnings range, and yielding a market-beating dividend with distribution growth forecast.
The takeaway for investors is that this market will still endure near-term pain, but the long-term outlook is robust, suggesting a market-beating total return could be easily achieved.
