Keep in mind that Stock Buybacks only make EPS look better by reducing the divisor in the equation NI/#shs. Over the past several years HD have significantly reduced the shs outstanding that has caused the EPS to rise several additional % above the real changes due to expense reduction. The problem is that the revenues have not increased very much low single digits. So be careful about investing at these levels on rising EPS that is not based on rising revenues. Eventually the momentum runs out and the stock will drop. The P/E ratio suggests that this stock is very overvalued by as much as 3 or 4 EPS multiple points. My belief that the process of trading back down to the average PE range for HD will begin after the earnings release in November.
Why should the company buy back shares trading at these very high prices; hopefully management is smarter than that. It would be a waste of shareholder money. Companies generally buy back shares when they feel the stock is undervalued. That is hardly the case today.