The analyst firm maintained its "hold" rating for the home improvement retailer. Canaccord analysts Laura Champine and Jason Smith raised their 2015 EPS estimates for Home Depot to $5.06 a share for the year from previous estimates of $4.90 a share ahead of the company's earnings release on Tuesday, Nov. 18.
"We believe our prior outlook underestimated HD's ability to leverage expenses on the 3% annual SSS growth we forecast over the FY15-FY18 time frame," the analysts wrote. "Our FY15 EPS estimate moves 16 cents higher to $5.06. Consensus has set an aggressive bar for FY15 in our view, however, and despite the increase our EPS estimate is still 16 cents below expectations."
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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 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."