Home Depot Closes in on All-Time High

One month ago, Home Depot ($HD) closed at a twelve-and-a-half year high. That’s an eighth of a century. The stock is back up and looks to take out the October high any day now. If so, Home Depot will be the latest in a string of mega-cap blue chip stocks to break very long-term highs.

HD set its all-time high close on the final day of the 20th century, December 31, 1999. Home Depot finished that day at $68.75. The stock is currently around $62.70, so it’s not too far away.

Share of HD are riding the recovery of the housing market. The shares are up 119% in the last 15 months. The stock has actually been outperforming the S&P 500 for close to five years. The stock had such a rotten time from 2000 to 2007, I don’t think people realize how cheap it had become.

I think Home Depot has become a bit too pricy here. But it goes to show you that if you wait long enough, every stock can have its day.

Since 1978, shares of Home Depot are up 180,000%. That’s a gain of 1,801-fold which works out to 23.8% per year. Over the same time, the S&P 500 has gained 1,170%.

Posted by on November 6th, 2012 at 12:04 pm


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