Wal-Mart, Intel, Home Depot Hit Highs

Wal-Mart, Intel and Home Depot hit 52-week highs Tuesday.
By Jake Lynch ,

BOSTON (TheStreet) -- U.S. stocks rallied Tuesday as the Federal Reserve reiterated its intention to keep interest rates low for an "extended period." The following Dow Jones Industrial Average components achieved 52-week highs.

3. Home Depot

(HD) - Get Report

declined 0.4% to $32.55, hitting a high of $32.81 during the session. Shares of the home-improvement retailer have gained 11% in the past four weeks. Its quarterly return on equity, a measure of profitability, matched the industry average, evident in the chart above.

Quarter

: Home Depot swung to a fourth-quarter profit of $342 million, or 18 cents a share, from a loss of $54 million, or break-even, a year earlier. Revenue declined 0.3% to $15 billion. Home Depot's operating margin remained steady at 34%. The balance sheet holds $1.4 billion of cash and $9.7 billion of debt.

Stock

: Home Depot has gained 62% during the past year, more than the Dow. The stock trades at a price-to-projected-earnings ratio of 15, a 12% discount to its peer-group average. A PEG ratio, a measure of value relative to expected growth, of 1.2 indicates costly shares. A ratio above 1 signals a premium.

Consensus

: Of analysts covering Home Depot, 20, or 65%, advise purchasing its shares, nine suggest holding and two recommend selling them.

Oppenheimer & Co.

expects the stock to advance 14% to $37.

Credit Suisse

and

FBR Capital Markets

also believe the stock will outperform the market.

2. Intel

(INTC) - Get Report

climbed 3.9% to $22, recording a high of $22.04. Shares of the chipmaker have increased 6.2% during the past month. New server chips are attracting investors.

Quarter

: Fourth-quarter profit multiplied 10 times to $2.3 billion, or 40 cents, as revenue grew 28% to $11 billion. The operating margin expanded from 22% to 35%. Intel holds $14 billion of cash, equating to a quick ratio of 2.1, and $2.2 billion of debt, translating to a debt-to-equity ratio of 0.1.

Stock

: Intel has increased 54% in the past 12 months, outpacing the Dow, but trailing the S&P 500. The stock sells for a price-to-projected-earnings ratio of 12, a 26% discount to the industry average, evident in the chart above. Its PEG ratio of 0.2 reflects a discount relative to expected growth.

Consensus

: Of researchers following Intel, 37, or 76%, rate its stock "buy," 10 rate it "hold" and two rate it "sell."

Raymond James Financial

projects the stock will hit $32, implying a 46% upside.

Thomas Weisel

and

UBS

also expect it to outperform the market.

TheStreet's

model rates Intel "buy."

1. Wal-Mart Stores

(WMT) - Get Report

climbed 1% to $55.99, touching a high of $56.27. Shares of the world's largest retailer have risen 4.5% in the past four weeks.

Quarter

: Fourth-quarter profit grew 22% to $4.6 billion, or $1.23, as revenue ascended 4.2% to $114 billion. The operating margin inched up from 6.2% to 6.4%. Wal-Mart holds $7.9 billion of cash, equating to a quick ratio of 0.2, and $41 billion of debt, amounting to a debt-to-equity ratio of 0.6.

Stock

: Wal-Mart has increased 15% in the past year, underperforming U.S. indices. The stock trades at a price-to-projected-earnings ratio of 13, a 14% discount to its peer-group average. It's also cheap based on trailing earnings, book value, sales and cash flow, as demonstrated in the chart above.

Consensus

: Of analysts covering Wal-Mart, 24 rate it "buy" and six rank it "hold."

Bank of America

values the stock at $65, 16% higher than today's closing price.

Rochdale Securities

and

Deutsche Bank

are also bullish.

TheStreet's

model rates Wal-Mart "buy" and expects it to strike $64.01.

-- Reported by Jake Lynch in Boston.

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