Home Depot Beat: Why It Dropped

Home Depot (HD) reported a nice earnings beat on Tuesday yet the stock was down on the day to close at $74.29. Home Depot is down almost 9% from its May 22 all-time high of $81.56. Inquiring minds want to know how that is possible.

The answer is quite simple and easy to understand. Home Depot's shares had gotten way too pricey. The springtime peak was set at a valuation of 22.3times today's post-surprise, upwardly revised FY 2013 estimate of $3.65 per share....280 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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