NEW YORK (TheStreet) -- Shares of Home Depot Inc. (HD) are up 5.78% to $88.42 on very heavy trading volume after the home improvement chain said it expected same-store sales to grow faster in the second half of the year as customers furnish new houses and renovate existing ones in a recovering housing market, Reuters reports.
The company earlier reported better-than-expected quarterly results.
The company expects same-store sales growth in the second half to be 80 basis points higher than the first half, Chief Financial Officer Carol Tome said on a conference call, Reuters said.
She said there was a "nice recovery" in demand from building contractors as "customers clearly feel better about investing in their homes." Home Depot gets much of its business from building contractors.
TheStreet's Julia Sun has details on Home Depot's latest quarterly report:
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 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."