Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Home Depot as such a stock due to the following factors:
- HD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $506.9 million.
- HD has traded 89,948 shares today.
- HD is trading at a new lifetime high.
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More details on HD:
The Home Depot, Inc. operates as a home improvement retailer. The stock currently has a dividend yield of 1.9%. HD has a PE ratio of 22.4. Currently there are 11 analysts that rate Home Depot a buy, no analysts rate it a sell, and 9 rate it a hold.
The average volume for Home Depot has been 5.9 million shares per day over the past 30 days. Home Depot has a market cap of $129.9 billion and is part of the services sector and retail industry. The stock has a beta of 1.21 and a short float of 1% with 2.35 days to cover. Shares are up 20.2% year-to-date as of the close of trading on Thursday.
rates Home Depot as a
. 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 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.
Highlights from the ratings report include:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 26.21% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- HOME DEPOT INC has improved earnings per share by 21.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, HOME DEPOT INC increased its bottom line by earning $3.75 versus $3.00 in the prior year. This year, the market expects an improvement in earnings ($4.48 versus $3.75).
- Despite its growing revenue, the company underperformed as compared with the industry average of 8.9%. Since the same quarter one year prior, revenues slightly increased by 5.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Specialty Retail industry and the overall market, HOME DEPOT INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- 35.02% is the gross profit margin for HOME DEPOT INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 7.49% is above that of the industry average.
- You can view the full Home Depot Ratings Report.