Home Depot - A Bargain

Home Depot ($36.05) just keeps on making more money.

At its present price the stock is a bargain and even if the price of the stock moved up 50% to $48.00 - it would still be undervalued.

Earnings for last year were $2.55 per share and for the current year the concensus estimate is $2.90 which means that the P/E is less than the growth rate! The normal is for the P/E to be at a premium to the growth rate.

The company has very little debt and no defined pension plan and is one of the 30 stocks that make up the Dow Jones Industrial Average. If you would like a list of other Dow stocks that are substantially undervalued just email us at fraserratings@yahoo.ca