VALUATION WATCH: Overvalued stocks now make up 47.59% of our stocks assigned a valuation and 14.98% of those equities are calculated to be overvalued by 20% or more. Nine sectors are calculated to be overvalued--one by double digits.
No Place Like Home
--Home Depot Inc (N:HD) Results Show Strong Sales Boost
We had some impressive results from home improvement super store Home Depot (N:HD) today, with the company reporting a 6.4% increase in sales vs Q3 2014 as well as an increase in net earnings of $0.20/share. These figures include the costs associated with that massive customer data breach last year as well.
These numbers may be used to argue that the US housing market is well into recovery as Home Depot chairman, CEO and president Craig Menear noted that "during the quarter, we saw broad-based growth across our geographies and product categories, led by growth in transactions from both our DIY and Pro customers." This sort of growth has NOT shown up at retailers in other categories and indicates that people are focusing on their homes rather than clothing, electronics, etc.
With the good results this quarter, Home Depot updated its guidance. "Based on its year-to-date results and the outlook for the fourth quarter, the Company expects fiscal 2015 sales growth of approximately 5.7 percent, with comps of approximately 4.9 percent. The Company also expects fiscal 2015 diluted earnings per share to grow by approximately 14 percent to $5.36. "
Below is today's data on Home Depot:
Home Depot (HD) is the one of world's largest home improvement retailer. The company offers a level of service unprecedented among warehouse-style retailers. Home Depot stores cater to do-it-yourselfers, as well as home improvement, construction and building maintenance professionals. The Home Depot currently operates in the USA, Canada, Chile, Puerto Rico, and Argentina. The company also operates EXPO Design Centers across the U.S. and Villager's Hardware in New Jersey.
VALUENGINE RECOMMENDATION: ValuEngine continues its HOLD recommendation on HOME DEPOT for 2015-11-16. Based on the information we have gathered and our resulting research, we feel that HOME DEPOT has the probability to ROUGHLY MATCH average market performance for the next year. The company exhibits ATTRACTIVE Company Size but UNATTRACTIVE Book Market Ratio.
You can download a free copy of detailed report on HD from the link below.
ValuEngine Forecast Target
Price* Expected
Return 1-Month 121.11 0.22% 3-Month 122.06 1.01% 6-Month 123.32 2.05% 1-Year 124.09 2.69% 2-Year 134.95 11.67% 3-Year 124.02 2.63%
Valuation & Rankings Valuation 7.82% overvalued Valuation Rank(?) 
34 1-M Forecast Return 0.22% 1-M Forecast Return Rank 68 12-M Return 23.91% Momentum Rank(?) 86 Sharpe Ratio 1.66 Sharpe Ratio Rank(?) 100 5-Y Avg Annual Return 27.73% 5-Y Avg Annual Rtn Rank 96 Volatility 16.67% Volatility Rank(?) 81 Expected EPS Growth 15.22% EPS Growth Rank(?) 54 Market Cap (billions) 159.25 Size Rank 100 Trailing P/E Ratio 23.28 Trailing P/E Rank(?) 50 Forward P/E Ratio 20.21 Forward P/E Ratio Rank 28 PEG Ratio 1.53 PEG Ratio Rank 32 Price/Sales 1.86 Price/Sales Rank(?) 46 Market/Book 21.82 Market/Book Rank(?) 5 Beta 0.95 Beta Rank 45 Alpha 0.21 Alpha Rank 87