Longs Positions in Demand for Home Depot Inc. – Boosted by Strong Housing Market
Home Depot Inc. on Tuesday posted sales and profit growth that met market expectations – revenue climbed 6.6% to $26.47 billion. The growing housing market continued to bolster results in the second quarter. The Atlanta-based company reported a profit of $2.44 billion, or $1.97 a share, up from $2.23 billion, or $1.73, a year ago.
In a further boost for the home supplies company, the Commerce Department reported on Tuesday that housing starts increased 2.1 percent to 1.211 million (annualized, seasonally adjusted basis), exceeding the forecast of 1.18 million. As the willingness of Americans to spend on home-improvement projects increases, renovations and home improvement spending rose, resulting in the expansion of Home Depot’s business.
At the end of the second quarter, the company operated 2,275 retail stores in the entire North American region, with the average customer spend rising by 2.4%.
Buy Stop at 136.15, Take profit at 138.65, Stop loss at 135.65