Why Home Depot Stock Hit a New High Today
Two giant retailers reported third-quarter earnings this morning, and both beat analyst expectations. But investors' reactions differed between the reports from Home Depot (NYSE: HD) and Walmart. While shares of Walmart were retreating Tuesday morning, Home Depot stock jumped to a new all-time high. As of 11:45 a.m. EST, Home Depot shares were up 6%.
The stock's move pushed its market cap to about $413 billion, passing that of Walmart and making it the second-largest retailer by that measure behind Amazon. Investors rewarded Home Depot for beating estimates with diluted net earnings that increased 23.3% over the year-ago period. Revenue also jumped almost 10%, and comparable store sales grew 6.1%, when analysts were expecting just a 2.2% increase.
Image source: Home Depot.
Source Fool.com
