Dow Today: Home Depot (HD) Lower

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) is trading down 43.0 points (-0.3%) at 13,567 as of Monday, Oct 8, 2012, 11:35 a.m. ET. During this time, 165.1 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 580.2 million. The NYSE advances/declines ratio sits at 987 issues advancing vs. 1,910 declining with 127 unchanged.

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Holding back the Dow today is Home Depot (NYSE:HD), which is lagging the broader Dow index with a $1.14 decline (-1.8%) bringing the stock to $62.06. This single loss is lowering the Dow Jones Industrial Average by 8.63 points or roughly accounting for 20.1% of the Dow's overall loss. Volume for Home Depot currently sits at 4.6 million shares traded vs. an average daily trading volume of 8.4 million shares.

Home Depot has a market cap of $93.07 billion and is part of the services sector and retail industry. Shares are up 50.3% year to date as of Friday's close. The stock's dividend yield sits at 1.9%.

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 22.1, 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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