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I have a few quick comments about Home Depot’s (HD) earnings. For some reason, people think this company is suffering much worse than it really is. (I defended the stock last month).

Home Depot has beaten Wall Street’s expectations for the past few quarters, and the company did it again on Tuesday. HD earned 93 cents a share, a penny better than expectations.

The company said its earnings will come in at the low-end of its guidance, which was 10% to 14%. Last year, HD made $2.72 a share, so the stock is now going for less than 13 times trailing earnings. If the company makes $3 a share this year (a 10.3% increase), then the stock is trading at about 11 times this year’s earnings.

I think investors are highly distrustful of the stock and they were ready to hear awful news. No such luck yet. I’m not a big fan of Bob Nardelli, but HD is a good stock at a good price.

Posted by edelfenbein at August 17, 2006 10:40 AM