Dow Today: Home Depot (HD) Leads The Day Higher, Caterpillar (CAT) Lags

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 92.0 points (-0.6%) at 14,773 as of Monday, Apr 15, 2013, 9:35 a.m. ET. During this time, 27.1 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 600 million. The NYSE advances/declines ratio sits at 456 issues advancing vs. 2,068 declining with 137 unchanged.
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The Dow component leading the way higher looks to be Home Depot (NYSE: HD), which is sporting a 43-cent gain (+0.6%) bringing the stock to $74.05. Volume for Home Depot currently sits at 335,849 shares traded vs. an average daily trading volume of 6.7 million shares.

Home Depot has a market cap of $106.57 billion and is part of the services sector and retail industry. Shares are up 19% year to date as of Friday's close. The stock's dividend yield sits at 2.2%.

The Home Depot, Inc. operates as a home improvement retailer. The company has a P/E ratio of 24, 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 impressive record of earnings per share growth, compelling growth in net income, revenue growth, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Holding back the Dow today is Caterpillar (NYSE: CAT), which is lagging the broader Dow index with a $1.11 decline (-1.3%) bringing the stock to $83.94. This single loss is lowering the Dow Jones Industrial Average by 8.4 points or roughly accounting for 9.1% of the Dow's overall loss. Volume for Caterpillar currently sits at 418,394 shares traded vs. an average daily trading volume of 6.2 million shares.

Caterpillar has a market cap of $56.14 billion and is part of the industrial goods sector and industrial industry. Shares are down 5.1% year to date as of Friday's close. The stock's dividend yield sits at 2.4%.

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. The company has a P/E ratio of 10.1, below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Caterpillar as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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