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.

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.

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.

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