Home Depot (NYSE: HD) ran a hugely successful retailing business even before the pandemic sparked a much higher demand for its home improvement products. Yet shares have underperformed the market in 2022 on fears of a slowdown in the housing market or a major growth hangover following several years of spiking demand.
The company's recent earnings update eased those concerns and showed that the chain is still likely to grow sales and earnings in 2022 at a solid clip. But one metric stood out as the best news that investors could hope for.
Let's take a closer look at why Home Depot's profitability is such a clear sign of market-beating shareholder returns ahead.
For further details see:
What This Major Indicator Could Mean for Home Depot Stock