Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

The Home Depot, Inc. (HD) Is Back With A Bang: Lumber Liquidators Holdings Inc (LL), Lowe’s Companies, Inc. (LOW)

Page 1 of 2

After lots of struggle, it seems that the housing industry has finally begun to show signs of improvement, as everything is going well for the industry.  The extremely favorable mortgage rates, which have sunk even lower this week; the remarkable drop in the foreclosure filings in January, which has reached the lowest level since April 2007; the tight supply of both new and previously owned homes available for sale; and the overall improvement in the economy, has resulted in a surge in home prices, the biggest annual increase since the second quarter of 2006. As the housing market is slowly recovering, homeowners are getting more confidence to spend on their homes, and thus companies across all segments of this industry are experiencing remarkable improvement in their earnings. One such company is The Home Depot, Inc. (NYSE:HD) , the world’s largest home improvement chain, which posted better than expected earnings in its fourth quarter reports. Before digging deep into the company’s fourth quarter earnings, let’s first have a look at the overall industry scenario.

The Home Depot, Inc. (NYSE:HD)Recent improvements in the Home Industry:

Recently, there has been a remarkable improvement in the US housing industry. The number of new homes sold in January surged almost 16% from December and nearly 30% from a year earlier. According to the Commerce Department, these numbers have reached their highest level in more than 4 years, and are well above the forecasts. Also, as per The National Association of Realtors, previously-owned homes have been sold at an annual pace of 4.92 million homes, which is 9% higher than the same period last year. The increased demand from buyers and a drop in sales of distressed homes, such as those in foreclosure, have resulted in a 12.3% surge in home prices and have marked the biggest percentage gain since January 2005.

The rebounding housing sector has been an important factor behind the improving performance of most of the companies in this sector. The nascent recovery in the housing sector and rebuilding efforts after Hurricane Sandy is the dominant factor behind The Home Depot, Inc. (NYSE:HD)’s strong quarter performance.

This quarter:

The Home Depot, Inc. (NYSE:HD) reported accelerating growth in the fourth quarter earnings, as its bottom line beat expectations and surged 36% to $1.0 billion, or $0.68 per share, from $774 million, or $0.50 per share a year earlier. Excluding a one-time gain, the company earned $0.67 per share. The top line also jumped 13.9% to $18.2 billion, beating analysts’ expectation of $17.7 billion.  This was backed by the 7% jump in sales at stores open for at least a year from a year earlier. The company reported in their fourth quarter that the average amount spent by each of their customers per shopping trip rose 5.6%, and their online sales also had a “strong” holiday season. The recent development in the housing sector catalyzed the growth in the company’s top and bottom lines.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!