Why Home Depot (HD) Stock Is Lower Before the Bell

NEW YORK (TheStreet) -- Home Depot (HD) stock is moving lower before the bell Tuesday after missing analysts' expectations for top-line growth.

Before market open, shares had dropped 1.5% to $75.35.

In its April-ending first quarter, the company earned $1 a share, a penny higher than analysts surveyed by Thomson Reuters expected. Revenue of $19.68 billion, though 3% higher year over year, missed estimates of $19.95 billion. 

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TheStreet Ratings team rates HOME DEPOT INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate HOME DEPOT INC (HD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

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