HD Supply continues to execute above peers in a challenging environment this year for industrial distributors, plagued by pricing, oil & gas and FX headwinds, Barclays noted.
"HD Supply has emerged as the lone outperformer driven by strong operational execution and capital structure changes," analysts at Barclays added.
Stock performance suggests relief around concerns that oil & gas and weather would have an outsized impact in the second quarter and core average daily sales growth came in at 6.5%, according to the analyst note.
HD Supply is an industrial distributor that operates in four segments: facilities maintenance, waterworks, power solutions and construction & industrial-white cap.
Shares of HD Supply Holdings are down 0.06% to $33.93 in trading afternoon Wednesday.
Separately, TheStreet Ratings team rates HD SUPPLY HOLDINGS INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate HD SUPPLY HOLDINGS INC (HDS) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: