HOME DEPOT COMPANY

Stock Performance Questions:

a. What is the stocks current price? What is the one year target?

b. How has the stock performed (stock history) (in terms of price) over the past year and past five years?

c. How has the stock performed relative to its competition?

d. What has been the earnings per share growth of the stock over the past 4 quarters and 5 years? Is it growing? Is it not?

e. How has the stock grown relative to the overall market growth this year? The past 5 years?

f. Is the stock fairly valued in the market? Take the PE Ratio and the EPS and multiple (PE Ratio x EPS), compare this number to the current price. Is it below current price? Then it is undervalued. Is it over this amount? It is overvalued. (example, would you pay $30K for a car thats worth 28K?, thats a comparative example of purchasing a stock that is overvalued). However, if the stock is undervalued, it might be a good deal and provide growth potential.

g. Does the stock provide a dividend? If yes, how much, and how has the growth been over the past 5 years? How does this compare to the overall market (growing/shrinking)? How does it compare to the competition (high or lower yield). For example, when you look at yahoo finance, it lists the dividend and yield. The dividend is in dollars, the yield is in percentages. Is the yield (annual percentage) greater than a competitors yield?

h. What are analysts saying about the stock? (buy, hold, or sell) Look at how many analysts support that number (is it 4 or 40), are stock analysts excited about the stocks future? What are they saying? Why are they saying this?