Home Depot Inc. (HD): Today's Featured Retail Laggard

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

Home Depot ( HD) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day down 0.5%. By the end of trading, Home Depot fell $2.06 (-2.6%) to $76.63 on average volume. Throughout the day, 8,568,837 shares of Home Depot exchanged hands as compared to its average daily volume of 6,915,400 shares. The stock ranged in price between $76.08-$78.82 after having opened the day at $78.50 as compared to the previous trading day's close of $78.69. Other companies within the Retail industry that declined today were: Orchard Supply Hardware ( OSH), down 18.0%, Dollar General Corporation ( DG), down 9.2%, Acorn International ( ATV), down 6.8% and Dillards ( DDS), down 5.1%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass

The Home Depot, Inc. operates as a home improvement retailer. Home Depot has a market cap of $114.9 billion and is part of the services sector. The company has a P/E ratio of 25.0, above the S&P 500 P/E ratio of 17.7. Shares are up 27.2% year to date as of the close of trading on Monday. Currently there are 12 analysts that rate Home Depot a buy, no analysts rate it a sell, and 11 rate it a hold.

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, revenue growth, notable return on equity, good cash flow from operations and compelling growth in net income. 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.

On the positive front, China Jo-Jo Drugstores ( CJJD), down 6.3%, E-Commerce China Dangdang ( DANG), down 6.1%, HHGregg Incorporated ( HGG), down 4.6% and Stage Stores ( SSI), down 3.3% , were all gainers within the retail industry with J.C. Penney ( JCP) being today's featured retail industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

null

More from Markets

Dow Lower as Energy Shares Fall on Drop in Oil Prices

Dow Lower as Energy Shares Fall on Drop in Oil Prices

Netflix Ready to Surpass Disney as America's Most Valuable Media Company

Netflix Ready to Surpass Disney as America's Most Valuable Media Company

Italian Bonds Slump as Government Mulls Anti-Euro Finance Minister

Italian Bonds Slump as Government Mulls Anti-Euro Finance Minister

Global Stocks Hold Gains as North Korea Response on Talks Soothes Nerves

Global Stocks Hold Gains as North Korea Response on Talks Soothes Nerves

One Thing to Consider Over Memorial Day Weekend: Are Stocks About to Collapse?

One Thing to Consider Over Memorial Day Weekend: Are Stocks About to Collapse?