Markets

Home Depot Still a “Top Pick” at Barclays; Estimates Lifted (HD)

Home improvement warehouse operator The Home Depot, Inc. ( HD ) on Wednesday caught some bullish commentary from analysts at Barclays Capital.

The firm maintained its "Overweight" rating on HD as well as its $57 price target, which suggests a 17% upside to the stock's Tuesday closing price of $48.67.

A Barclays analyst commented, "The Home Depot reported continuing 1Q EPS of $0.65, above our estimate of $0.64 and compared to $0.50 last year. 1Q same-store sales of 5.8%, though slightly below our 6.0% expectation, represented the company's strongest compare since 1Q04. In the U.S., comps increased an impressive 6.1%."

Accordingly, the firm lifted its earnings estimates for HD through 2014. Home Depot shares posted modest gains in afternoon trading Wednesday.

The Bottom Line

Shares of Home Depot ( HD ) have a 2.38% dividend yield, based on last night's closing stock price of $48.67. The stock has technical support in the $44-$45 price area. If the shares can firm up, we see overhead resistance around the $50-$52 price levels.

The Home Depot, Inc. ( HD ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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