"We are encouraged by the improvements and advantages in Home Depot's infrastructure and product offering that enable it to lead the industry in serving its customers," analysts said about the Atlanta, GA-based home improvement retailer.
"Our caution, while moderate, comes from frequent crossshopping in the industry, which creates competitive pressures, difficulty improving already efficient operations at peak margins of 12.5%, and lack of visibility into home price appreciation continuing at its recent pace," analysts noted.
"Following a 27% return in the stock over the last year and a about 155% return in the last three years (vs. 9% and 93% for the S&P Retailing index), we expect moderate multiple expansion from current levels," analysts added.
Separately, 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 solid stock price performance, impressive record of earnings per share growth, revenue growth, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."