After a long harsh winter, Home Depot (HD) is basking in the warm glow of the sun. Second quarter earnings for the home improvement retailer blew past analyst estimates, and the company also raised its outlook for the rest of the year.
That helped allay concerns about the housing market cooling off, and it has done wonders for Home Depot's share price.
But even though the stock has surged 10% since its August 19th earnings release, it isn't exactly cheap. Shares currently trade at 17.6 times next year's earnings, compared with 16.8 for rival Lowe's Home Improvement. (LOW)
