Want more evidence that a
is underway? Look no further than
Home Depot's (
latest earnings report.
The home-improvement chain released third-quarter earnings
this morning, as same-store sales increased 4.2% from a year ago.
Better yet, the company upped its 2012 forecast by eight cents to
$3.03 per share for the year. Its revenue growth forecast also
increased from 4.6% to 5.2%.
The solid earnings were enough to push Home Depot shares up
4.5% in morning trading. At just under $64 a share, the stock has
reached a new 52-week high.
Home Depot's earnings should be music to the ears of fellow
), Toll Brothers (
Pier 1 Imports (
Those companies all report third-quarter earnings in the next few
weeks. Lowe's reports earnings next Monday.
Those earnings reports should shed more light on the state of
the housing market. But Home Depot's improved sales are certainly
a good sign. It's just the latest in a series of signs that a
long-anticipated housing recovery has finally arrived.
Housing starts jumped to a four-year high in September,
increasing 35% from a year ago. That followed an August in which
existing home sales rose 9% from the previous year.
With signs of a recovery everywhere, the two main
that track the housing market have gone through the roof this
iShares Dow Jones US Home Construction (NYSEArca:
ETF, whose holdings include Home Depot, Lowe's and Toll Brothers,
is up 65% year-to-date. The
SPDR S&P Homebuilders (NYSEArca: XHB)
ETF, meanwhile, has returned more than 46% this year.
Home Depot shares have risen 51% in 2012.