On Tuesday, the home improvement retailer reported better-than-expected 2015 fourth quarter results.
Home Depot's fourth quarter increases BMO's confidence in its earnings outlook, the firm said. Additionally, the results showed strong home improvement spending despite cuts in GDP growth.
"Demand driven by demographic (aging, millennials) and consumer spending shifts toward the home, coupled with share gains in appliances from Sears (SHLD), should continue to propel Home Depot's sales," BMO said.
BMO analysts raised their 2016 earnings estimate for Home Depot to $6.22 per share from $6.20 per share.
Home Depot stock is down by 0.62% to $123.85 in mid-morning trading on Wednesday.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "buy" with a ratings score of 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, increase in net income, revenue growth and notable return on equity. 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