4-Star Stocks Poised to Pop: Home Depot

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, home improvement retailer Home Depot (NYSE: HD  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Home Depot's business and see what CAPS investors are saying about the stock right now.

Home Depot facts

Headquarters (founded) Atlanta (1978)
Market Cap $80.1 billion
Industry Home improvement retail
Trailing-12-Month Revenue $71.4 billion
Management Chairman/CEO Francis Blake (since 2007)
CFO Carol Tome (since 2001)
Return on Equity (average, past 3 years) 18.7%
Cash/Debt $3.2 billion / $10.8 billion
Dividend Yield 2.2%
Competitors Lowe's
Menards
True Value

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 78% of the 4,281 members who have rated Home Depot believe the stock will outperform the S&P 500 going forward.

A couple of months ago, one of those bulls, SharpNJ104, touched on the improving trends working in Home Depot's favor:

[H]omeowners are moving forward with home improvement projects this year after holding back the last few [years]. And once the housing market really recovers, Home Depot will take advantage big time. People who buy the foreclosed homes will want to renovate/fix them up and homeowners will still want to change the paint color, add color to the flower beds, or plant the garden to save money at the grocery store with the rising food prices.

If you want market-beating returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Home Depot may not be your top choice.

We've found another retailer we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Home Depot and writing covered calls on Lowe's. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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