NEW YORK (TheStreet) -- Home Depot (HD) reported 2016 third quarter financial results that beat expectations on both the top and bottom line. The Atlanta-based home improvement retailer posted earnings of $1.61 per share on revenue of $23.15 billion. Wall Street had projected earnings of $1.58 per share on revenue of $23.04 billion.
"Another very solid report from Home Depot," Oppenheimer managing director Brian Nagel said on CNBC's "Squawk Box" this morning.
The results from Home Depot indicated that the home improvement market is not struggling, as some may have previously suggested.
"Just a few weeks ago there were some weaker supply reports out there, which really caused the market to worry if the home improvement market was cracking. With these results, today, the answer is clearly no," Nagel stated.
He then commented on how investors should play this stock given the results of last week's Presidential election.
"If tax rates go lower that's a positive, it's going to put more money in the pocket of the consumer," Nagel noted.
Regarding his view on where the stock trades from here, Nagel currently has a $140 price target.
"I think it's a 20-multiple type stock. That really hasn't changed much in the last couple of weeks," Nagel said.
Shares of Home Depot opened lower on Tuesday.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of A on Home Depot stock.
The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, notable return on equity, good cash flow from operations and increase in net income.