Home Depot (HD) Leads The Pack In Pre-Market Activity

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Home Depot ( HD) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Home Depot as such a stock due to the following factors:

  • HD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $461.1 million.
  • HD traded 53,789 shares today in the pre-market hours as of 7:44 AM.
  • HD is up 3.5% today from Friday's close.

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More details on HD:

The Home Depot, Inc. operates as a home improvement retailer. The stock currently has a dividend yield of 2.2%. HD has a PE ratio of 21.3. Currently there are 13 analysts that rate Home Depot a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Home Depot has been 6.0 million shares per day over the past 30 days. Home Depot has a market cap of $114.7 billion and is part of the services sector and retail industry. The stock has a beta of 0.84 and a short float of 0.9% with 3.05 days to cover. Shares are up 1.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Home Depot as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, impressive record of earnings per share growth, increase in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • HD's revenue growth has slightly outpaced the industry average of 0.3%. Since the same quarter one year prior, revenues slightly increased by 2.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • HOME DEPOT INC has improved earnings per share by 20.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, HOME DEPOT INC increased its bottom line by earning $3.75 versus $3.00 in the prior year. This year, the market expects an improvement in earnings ($4.42 versus $3.75).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Specialty Retail industry average. The net income increased by 12.5% when compared to the same quarter one year prior, going from $1,226.00 million to $1,379.00 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Specialty Retail industry and the overall market, HOME DEPOT INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.

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