Sunday, September 7, 2014

* Home Depot (HD) - From Bust to Boom; Why the Stock Hit-All Time Highs in Two Charts


Share on StockTwits



HD closed Friday trading at $91.61, up 1.9%. The Symbol Summary is included below.

Provided by Livevol


This is a quick note on HD, and how the firm has recovered from the doldrums of the great recession to now all-time highs.

Conclusion
Sometimes it's as simple as revenue and earnings in the stock market, and HD is example 'A1.' In two charts we'll see how the fundamental improvements in the firm have driven the stock price up. Sometimes it's just this easy: it's the earnings, and that's it.

Revenue
We can see how revenue peaked into the housing boom, collapsed into the great recession, and now has recovered to near peak levels.



Net Income
This chart is very similar to the total revenue chart, but more pronounced. Earnings were hammered into the great recession and have exploded on the way out.



Net Income to Stock Price
Does any of this matter?  Of course it does... The growth in earnings mirrors the growth in the stock price.


Some times it's just that simple.

This is trade analysis, not a recommendation.






Legal Stuff:
Options involve risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade options, and must meet suitability requirements.

The information contained on this site is provided for general informational purposes, as a convenience to the readers. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. I am not engaged in rendering any legal or professional services by placing these general informational materials on this website.

I specifically disclaim any liability, whether based in contract, tort, strict liability or otherwise, for any direct, indirect, incidental, consequential, or special damages arising out of or in any way connected with access to or use of the site, even if I have been advised of the possibility of such damages, including liability in connection with mistakes or omissions in, or delays in transmission of, information to or from the user, interruptions in telecommunications connections to the site or viruses.

I make no representations or warranties about the accuracy or completeness of the information contained on this website. Any links provided to other server sites are offered as a matter of convenience and in no way are meant to imply that I endorse, sponsor, promote or am affiliated with the owners of or participants in those sites, or endorse any information contained on those sites, unless expressly stated.

No comments:

Post a Comment