Please ensure Javascript is enabled for purposes of website accessibility

The Power of the Home Depot

By Chris Hill - Feb 25, 2014 at 7:59PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Home Depot delivered another very solid earnings report, so why are some calling the announcement a mixed bag?

Shares of Home Depot (HD -0.49%) were up 4% today after the company reported a very solid overall earnings report. Q4 profits were up 7%, same-store sales rose 4.5%, and the company was able to raise its dividend. So why are some in the media calling the report a mixed bag?

In this segment from Tuesday's Investor Beat, host Chris Hill and Motley Fool analyst Mike Olsen look through the report. Mike also looks more broadly at some of the macro factors acting as tailwinds for Home Depot, as an improving economy and rising home prices are encouraging home owners to spend more on home improvement, and he highlights the company's incredible supply chain and its ability to translate those supply efficiencies into very low costs for consumers. And with CEO Frank Blake putting a lot of effort into cutting costs within the company, any increases in sales are able to flow right to the bottom line.

Chris Hill and Michael Olsen, CFA, have no position in any stocks mentioned. The Motley Fool recommends Home Depot. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Home Depot, Inc. Stock Quote
The Home Depot, Inc.
HD
$325.76 (-0.49%) $-1.62

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
402%
 
S&P 500 Returns
129%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/18/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.