Home Depot Rises on Earnings Optimism

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

Stocks are taking a breather after yesterday's big run-up, with the Dow Jones Industrial Average (DJINDICES: ^DJI  ) just below breakeven as of 2:30 p.m. EST. While the index's blue-chip stocks are split pretty evenly between risers and losers on a day of relative calm for investors, Home Depot (NYSE: HD  ) is lighting up the markets with a huge rise. Boeing (NYSE: BA  ) , though, has sunk 2.1% to fall to the bottom of the Dow. Let's catch up on what you need to know.

Home Depot hits the right marks
Earnings season is mostly finished, but Home Depot's late report is delighting investors and bringing in a 3% gain on the market. The home improvement retailer announced today that net earnings fell 1% for its most recent quarter and total sales dipped 3%, consequences of the winter's unusually bad weather. The housing market's rise has sustained Home Depot's climb over the recent past, and while the company's performance dropped off a bit in this most recent quarter, it still managed to beat analyst estimates.

Can the retailer keep up its stock's huge gains after rising more than 65% over the past two years? Projections certainly look rosy: Home Depot expects same-store sales growth of 4.6% for the coming fiscal year, ahead of the 4.4% mark it notched in the fourth quarter. U.S. same-store sales growth in particular has been on a tear lately, picking up 4.9% for the quarter; however, some housing industry observers believe that home price increases and the likelihood of rising interest rates could hamper the sector's growth this year. Still, even though home prices gained more than 13% year over year in December, prices still are far below their pre-recession peaks. With the economy still in rebound mode, there's plenty of room for optimism for Home Depot investors.

Meanwhile, 2013 top Dow stock Boeing has struggled today. Shares of the aerospace giant have tumbled after reports emerged that Boeing is having trouble finding a buyer for 11 787 Dreamliner aircraft the company built early on that had to be retrofitted to meet safety standards, according to a report from Bloomberg Businessweek. The aircraft are valued at up to $1.1 billion; while that may seem like a lot for most companies, it's only a drop in the bucket for Boeing. The airplane manufacturer's total commercial backlog stands at nearly $373 billion as of its most recent fiscal year's end and has been growing rapidly lately. Don't stress Boeing's latest hiccup too much, shareholders.

Finally, Chevron's (NYSE: CVX  ) stock has gained about 0.8% today amid reports that the company is potentially interested in finding a buyer for its midstream business. Chevron has launched a strategic review of the unit, according to sources who spoke to Bloomberg, although the company hasn't committed to a sale or any other permanent option for the business just yet. Analysts estimate the midstream division could be worth up to $5 billion, a price that would be a big injection of cash for Chevron. Still, things are only in the early stages as far as Chevron and its midstream business go: Don't expect a decision on this unit for quite some time.

Can this amazing stock outperform the Dow's best?
Dow stocks such as Boeing and Home Depot have performed very well as of late. There's a huge difference between a good stock and a stock that can make you rich, however. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2853690, ~/Articles/ArticleHandler.aspx, 9/1/2015 2:10:17 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Dan Carroll

Dan began writing for the Motley Fool in 2012. He is a health care specialist who also follows the defense industry along with tracking the broader U.S. and international markets.

Today's Market

updated 4 hours ago Sponsored by:
DOW 16,528.03 -114.98 -0.69%
S&P 500 1,972.18 -16.69 -0.84%
NASD 4,776.51 -51.82 -1.07%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/31/2015 4:57 PM
^DJI $16528.03 Down -114.98 -0.69%
BA $130.68 Down -2.56 -1.92%
The Boeing Company CAPS Rating: ****
CVX $80.99 Up +0.56 +0.70%
Chevron CAPS Rating: ****
HD $116.46 Down -1.06 -0.90%
Home Depot CAPS Rating: ****