TheStreet.com Ratings provides exclusive stock, ETF and mutual fund ratings and commentary based on award-winning, proprietary tools. Its "safety first" approach to investing aims to reduce risk while seeking total return performance.
The numbers: Second-quarter earnings fell 7% to $1.1 billion, or 66 cents a share, as revenue declined 9% to $19 billion. Its operating margin remained less than 10% and its net margin was little changed at 6%. A quick ratio of 0.4 demonstrates weak liquidity, but its cash balance has almost tripled to $3.1 billion from the year-earlier quarter. A debt-to-equity ratio of 0.6 indicates conservative leverage. We give Home Depot a financial strength score of 9.9 out of 10 because of its resilient business model.
The stock: Home Depot has advanced 19% this year, more than the Dow Jones Industrial Average and the S&P 500 Index. The stock trades at a price-to-earnings ratio of 19, on par with the market, and offers a 3.3% dividend yield, less than the average of S&P 500 companies.The model upgraded packaging maker Sealed Air (SEE) to "buy." The numbers: Second-quarter earnings decreased 3% to $61 million, or 33 cents, as revenue fell 20% to $1 billion. Its operating margin jumped from 10% to 12% and its net margin rose from 5% to 6%. A quick ratio of 0.8 indicates less-than-ideal liquidity and a debt-to-equity ratio of 1 reflects a sizable debt load. The stock: Sealed Air is up 26% this year, outpacing the Dow and S&P 500. The stock trades at a price-to-earnings ratio of 20, a slight premium to the market, and offers a 2.6% dividend yield. The model upgraded paint retailer Sherwin-Williams (SHW) to "buy."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV