Dow Today: Home Depot (HD) Higher

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 up 13 points at 14,973 as of Thursday, Jun 6, 2013, 10:35 a.m. ET. During this time, 125.6 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 599.5 million. The NYSE advances/declines ratio sits at 1,641 issues advancing vs. 1,135 declining with 163 unchanged.
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The Dow component leading the way higher looks to be Home Depot (NYSE: HD), which is sporting a $1.33 gain (+1.8%) bringing the stock to $76.43. This single gain is lifting the Dow Jones Industrial Average by 10.07 points or roughly accounting for 77.5% of the Dow's overall gain. Volume for Home Depot currently sits at 2.7 million shares traded vs. an average daily trading volume of seven million shares.

Home Depot has a market cap of $111.94 billion and is part of the services sector and retail industry. Shares are up 21.4% year to date as of Wednesday's close. The stock's dividend yield sits at 2%.

The Home Depot, Inc. operates as a home improvement retailer. The company has a P/E ratio of 24.3, 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, 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.

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