How Will Home Depot (HD) Stock Be Affected By Possible Data Breach?

NEW YORK (TheStreet) -- Shares of Home Depot Inc. (HD) are down -2.32% to $90.87 after it was reported that the retailer may have suffered a massive credit card breach, according to KrebsonSecurity.com.

"Multiple banks say they are seeing evidence that Home Depot stores may be the source of a massive new batch of stolen credit and debit cards that went on sale this morning in the cybercrime underground. Home Depot says that it is working with banks and law enforcement agencies to investigate reports of suspicious activity, Krebs said.

Home Depot confirmed to Krebs that the company is investigating.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

"...we are looking into some unusual activity and we are working with our banking partners and law enforcement to investigate," Home Depot said.

There are signs that the perpetrators of this apparent breach may be the same group of Russian and Ukrainian hackers responsible for the data breaches at Target (TGT) , among others.

The banks contacted by Krebs all purchased their customers' cards from the same underground store - rescator[dot]cc - which on September 2 moved two massive new batches of stolen cards onto the market.

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, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

If you liked this article you might like

Irma and Harvey Busted Algos; Probably Done Deals Under Trump: Best of Cramer

Lowe's Predictable Plateaus

This Is How to Avoid Becoming Amazon Roadkill

These Stocks Pay You to Own Them

Cramer: Dominoes Are in Play Today