It’s been a tough stretch for shares of home improvement retailer Home Depot (NYSE:HD). In early September 2018, Home Depot stock was touching all-time highs around $215 and everything was going right for the company. Then, the U.S. economy started to cool, the Fed kept hiking interest rates and trade relations between the U.S. and China got worse.
This created a triple headwind for Home Depot stock. By Christmas Eve, Home Depot stock had dropped 25% to below $160.
That was a dip worth buying. Since Christmas Eve, Home Depot stock has rallied nearly 15% to almost $180 as the macroeconomic outlook has improved. Namely, a strong December jobs report put to rest recession fears, the Fed has backed off its “must hike rates at all costs” mantra and there’s optimism regarding how trade talks between the U.S. and China will play out in the new year…read more