Wednesday Night's Show Highlights:
Home Depot is not done! With the housing rebound & millennials emerging, consider HD!
Wednesday, December 11, 2013
Cramer's comments: (prev. night's show posted each business morning before the market open)
Jim: With interest rates on the rise, what's going to happen to the complex housing-related stocks? Nobody gives you a better read on the business than Home Depot, the incredibly well-managed company that's the largest home improvement retailer on earth, with 2260 stores in North America, Puerto Rico, Guam and the U.S. Virgin Islands. And today we lucked out, because this is Home Depot's annual analyst day.
Home Depot reaffirmed its sales and earnings guidance for 2013, and forecast terrific 7% growth in same-store sales... not many have that... along with a solid $5 billion buyback. That's been consistent. Plus management gave strong guidance for 2014, predicting a 17% increase in earnings, and a 5% rise in revenues. And not only that but, at their analyst day a year ago, Home Depot made a called shot.
They laid out a long-term operating margin of 12%, and told us the company would hit that target by the end of fiscal 2015. And then today, we found out that they're one year ahead of schedule. That's execution! Now, Home Depot's been on a roll lately. The stock's up 28% year to date. And the company blew away the numbers when it reported back in mid-November. We've been behind this stock forever.