Home Depot sluggish after downgrade
Goldman Sachs lowers its rating for the home improvement chain, citing tough macro and housing data.
By Andrea Tse, TheStreet
Updated: 8 p.m. ET.
Home Depot shares dipped this morning but finished up 0.2% to $31.47 to $31.74, the second-worst performer among the 30 stocks in the Dow
Jones Industrial Average ($INDU). The Dow finished the day up 193 points, or 1.8% to 10,945, its best close since May 3.
"The company is executing well, but as the stock has bounced off the bottom in the midst of choppy macro data and soft channel checks and into tougher sales and margin compares over the next two quarters, valuation and upside are less compelling," Goldman Sachs analyst Matthew Fassler explained in an investor note.
"The exceptional HD turnaround story is still very much under way but is well understood by the market today."
Fassler said he's becoming increasingly selective on the do-it-yourself sector in the face of "tough" macro data and "uninspiring" channel check. He added that housing data remain weak.
"While we have noted a diminished correlation between sector sales and housing turns, leading indicators are subdued."
Goldman Sachs currently has a $35, 12-month price target for Home Depot stock. Home Depot is up 9.7% on the year, sixth-best among the Dow stocks.
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] Equity indices settled on their lows following a steady, session-long slide. Similar to yesterday, small-caps paced the retreat as the Russell 2000 fell 1.6%, extending its December loss to 3.6%. The S&P 500 settled lower by 1.1%, widening its month-to-date decline to 1.3%.
There was no specific news catalyst behind today's slide, which had the markings of broad-based profit-taking. Seven of ten sectors settled with losses of 1.0% or more while only two groups ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
LATEST MARKET DISPATCHES
- No more Dispatches; here's where to find market news
The Market Dispatches column has been discontinued. Here's where to find the latest stock and business news on MSN Money, and the latest from market writer Charley Blaine.
- Dow falls 59 as late-day gloom kills a rally
- Stocks held back by fiscal-cliff worries
- Stocks suffer worst weekly loss in 5 months
- Dow off 121 as post-election swoon continues
- Dow slumps 313 after Obama's re-election
- Dow jumps 133 as Americans head to the polls
The offering could become the second-biggest this year if underwriters exercise an option to buy more shares.