The Daily Beast went with the phrase "good earnings and omens" in a headline. To Investor's Business Daily, Home Depot's numbers affirmed that a housing recovery is at hand. They said in a headline: "Home Depot, Valspar Results Point To Housing Recovery."
But let's cool those kitchen-remodeling jets for a moment. Nevermind that top-line growth was suspect and a decent portion of the positive earnings came thanks to efficiencies, a Home Depot specialty.
Here's the other important item to remember as Home Depot beats earnings estimates and tweaks forecasts up: Home Depot has been doing pretty well throughout our long, economic nightmare. Nearly all the media framed Home Depot's quarterly earnings as a definitive turning point. Forbes did quite well to remind us of the underlying truth:
While the housing market has lagged the broader recovery, home-improvement stores never experienced the same troubles as other retailers. Homeowners chose to redo or spruce up their homes instead of selling, and headed to places [like] Home Depot and Lowe's (LOW) for the supplies. Home Depot stock has nearly doubled in three years. Meantime, the S&P 500 gained only 39%.Home Depot is back, so they economy is back! Actually, Home Depot never quite left us. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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