Oppenheimer Looks Favorably Upon HD's Better-Than-Expected 4Q

Oppenheimer reports that it is looking very favorably upon the better-than-expected 4Q (Jan. 2011) results and updated FY11 (Jan. 2012) guidance that Home Depot, Inc. HD reported today. “Sales at HD and within the home improvement sector have languished for some time,” Oppenheimer writes. We are increasingly optimistic that better trends late in FY10 portend a long overdue, sustained sales acceleration in coming quarters. Comp sales in 4Q rose an above plan +3.9%. “Average ticket increased +2.6%, marking the best performance in this metric since 2Q06 and suggesting stronger sales of higher priced items. HD continues to control costs well even as sales begin to edge higher. We recommend HD as one of the most interesting large cap hardlines stocks for 2011. Our rating on HD is Outperform.” Home Depot currently trades at $38.48.