This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Home Depot Remains Top Analyst Pick

(Home Depot article updated with stock price movement.)

NEW YORK ( TheStreet) -- Home Depot (HD - Get Report) continues to be the top pick in the home improvement sector.

The company was upgraded by Morgan Stanley to overweight from equal weight Monday, with Morgan Stanley conveying that it is optimistic about Home Depot's outlook going forward.

"We believe that the turn in housing is real. Our Home Improvement Lead Indicator has posted three straight months of gains -- the first such increase since 2006," the bank wrote in a note.

The increase in existing home sales is also a good sign that traffic should continue to drive same-store sales in 2010. Morgan Stanley is calling for positive comparable sales by the second quarter.

Home Depot has delayed expansion plans and recently announced it will lay off 1,000 employees.

Morgan Stanley also said it believes there is more margin upside to the market's expectations.

Last week, Goldman Sachs downgraded rival Lowe's (LOW - Get Report). The firm does see improving sales and earnings trends in the sector, but -- as with Morgan Stanley, believes Home Depot is the way to go on the turnaround.

Shares of Home Depot are climbing 3% to $28.83, while Lowe's is up 2.6% to $22.15.

-- Reported by Jeanine Poggi in New York.


Follow on Twitter and become a fan on Facebook.
Copyright 2009 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HD $111.85 0.00%
LOW $63.55 0.00%
AAPL $95.01 0.00%
FB $99.75 0.00%
GOOG $682.74 0.00%


Chart of I:DJI
DOW 16,027.05 -177.92 -1.10%
S&P 500 1,853.44 -26.61 -1.42%
NASDAQ 4,283.7530 -79.3910 -1.82%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs