The Power of the Home Depot

Before you go, we thought you'd like these...
Before you go close icon

Shares of Home Depot were up 4% today after the company reported a very solid overall earnings report. Q4 profits were up 7%, same-store sales rose 4.5%, and the company was able to raise its dividend. So why are some in the media calling the report a mixed bag?

In this segment from Tuesday's Investor Beat, host Chris Hill and Motley Fool analyst Mike Olsen look through the report. Mike also looks more broadly at some of the macro factors acting as tailwinds for Home Depot, as an improving economy and rising home prices are encouraging home owners to spend more on home improvement, and he highlights the company's incredible supply chain and its ability to translate those supply efficiencies into very low costs for consumers. And with CEO Frank Blake putting a lot of effort into cutting costs within the company, any increases in sales are able to flow right to the bottom line.

More great retailers shining where others fall flat
To learn about two retailers with especially good prospects, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.

The article The Power of the Home Depot originally appeared on

Chris Hill and Michael Olsen, CFA, have no position in any stocks mentioned. The Motley Fool recommends Home Depot. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

People are Reading