Before the market open on Tuesday, Home Depot reported 2015 third quarter earnings of $1.35 per share on revenue of $21.8 billion. Analysts had forecast for earnings of $1.32 per share on revenue of $21.76 billion.
The company raised its full-year 2015 earnings guidance to $5.36 per share, up from the prior forecast of per share earnings between $5.31 and $5.36.
Home Depot is a home improvement retailer based in Atlanta.
The retailers have come under some severe pressure of late because of worries about the consumer and spending. Those are major concerns for these companies coming into the holidays, the time when most of these firms do the bulk of their sales. However, some retailers continue to shine. One of those is Home Depot, which reached a new all-time high last Friday, after posting robust earnings results earlier in the week.
We can see from the chart this could be a bit extended, but volume has been brisk and if there is a pullback, it would be to the mid $120s, and that would be a good entry point. The moving average convergence divergence (MACD) is on a renewed buy signal, and while relative strength is powerful, it may be peaking.
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Separately, TheStreet Ratings team rates HOME DEPOT INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
We rate HOME DEPOT INC (HD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth. We feel its 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 analysis from the report here: HD
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.