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 1.5%. By the end of trading, Home Depot fell $1.26 (-1.6%) to $75.93 on average volume. Throughout the day, 7,982,669 shares of Home Depot exchanged hands as compared to its average daily volume of 7,228,100 shares. The stock ranged in price between $75.92-$77.27 after having opened the day at $77.07 as compared to the previous trading day's close of $77.19. Other companies within the Retail industry that declined today were: Orchard Supply Hardware Class A ( OSH), down 58.7%, China Jo-Jo Drugstores ( CJJD), down 7.5%, E-Commerce China Dangdang ( DANG), down 6.1% and Christopher & Banks Corporation ( CBK), down 4.0%.
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The Home Depot, Inc. operates as a home improvement retailer. Home Depot has a market cap of $111.2 billion and is part of the services sector. The company has a P/E ratio of 24.2, above the S&P 500 P/E ratio of 17.7. Shares are up 24.8% year to date as of the close of trading on Tuesday. Currently there are 12 analysts that rate Home Depot a buy, no analysts rate it a sell, and 10 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, Pacific Sunwear ( PSUN), down 4.1%, Natural Grocers by Vitamin Cottage ( NGVC), down 3.1%, Mercadolibre ( MELI), down 1.9% and Ingles Markets ( IMKTA), down 1.7%.

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).

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