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Home Depot (HD) has a bullish Chaikin Power Gauge stock rating and delivered a very pleasant earnings and revenue surprise on 2/24 when they beat analyst earnings estimates by over 10%, and continued a string of 10 quarters in a row of better earnings and top line revenues. The company also raised its dividend so that it now yields 2%, and most importantly announced an $18 billion buyback program that represents 12% of its market capitalization at current price levels.
HD recently triggered an oversold buy signal in Chaikin Analytics as it has consolidated its recent gains over the past eight trading sessions. Buy Home Depot on any short-term dips under $113.
Home Depot is one of the world’s largest home improvement retailers. It caters to do-it-yourselfers as well as home improvement specialists and building contractors. The company has a growing online retail business which increased revenue by 36% in 2014 to $3.7 billion, which represents 4.5% of revenue. This effort is being spearheaded by a deeply engaged online sales and marketing executive.
Oppenheimer analyst Brian Nagel recently upped his price target on Home Depot to $133 from $115, citing the strong outperformance of home improvement stocks in the early stages of interest rate hike cycles. HD is in our very favorite Consumer Discretionary Sector and is clearly benefitting from the decrease in gasoline prices at the pump that is putting more dollars into the pockets of people who drive pickup trucks and tend to shop at Home Depot.
All in all an attractive stock to buy on weakness as the broad market corrects its recent overbought condition.
HD has a bullish Chaikin Power Gauge stock rating that is driven by Industry Group strength, a strong earnings trend and projected earnings growth, as well as positive trends in analyst estimates revisions. The technical picture is particularly strong with the stock having had only a modest pullback from its recent high of $117.92.
Plus:
Chaikin Analytics stock research
Chaikin Power Gauge stock rating model
NASDAQ Chaikin Power Stock Indexes
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
