Dow Today: International Business Machines (IBM) Leads The Day Higher, Home Depot (HD) Lags

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

The Dow Jones Industrial Average (^DJI) closed up 69 points (+0.5%) at 13,323. During the day, 576.6 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 589 million. The NYSE advances/declines ratio closed at 2,011 issues advancing vs. 973 declining with 126 unchanged.

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The Dow component that led the way higher today was International Business Machines (NYSE:IBM), which sported a $2.32 gain (+1.1%) bringing the stock to $203.27. This single gain lifted the Dow Jones Industrial Average by 17.56 points or roughly accounting for 25.4% of the Dow's overall gain. Volume for International Business Machines ended the day at 3.9 million shares traded vs. an average daily trading volume of 3.6 million shares.

International Business Machines has a market cap of $227.98 billion and is part of the technology sector and computer hardware industry. Shares are up 8.5% year to date as of Monday's close. The stock's dividend yield sits at 1.7%.

International Business Machines Corporation provides information technology (IT) products and services worldwide. The company operates in five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. The company has a P/E ratio of 14.6, equal to the average computer hardware industry P/E ratio and below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates International Business Machines as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, growth in earnings per share, increase in net income, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

• You can view the full International Business Machines Ratings Report.

Holding the Dow back today was Home Depot (NYSE:HD), which lagged the broader Dow index with a 57-cent decline (-1%) bringing the stock to $56.72. Volume for Home Depot ended the day at 7.4 million shares traded vs. an average daily trading volume of 9.8 million shares.

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Home Depot has a market cap of $86.32 billion and is part of the services sector and retail industry. Shares are up 36.2% year to date as of Monday's close. The stock's dividend yield sits at 2%.

The Home Depot, Inc., together with its subsidiaries, operates as a home improvement retailer. The company's stores sell building materials, and home improvement and lawn and garden products to do-it-yourself, do-it-for-me (at D-I-F-M), and professional customers. The company has a P/E ratio of 20.5, equal to the average retail industry P/E ratio and above the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Home Depot as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, revenue growth, notable return on equity and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

• You can view the full Home Depot Ratings Report.

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