Home Depot Inc (NYSE:HD) — This retail warehouse chain was last reviewed by me on Jan. 27 with a suggestion that “traders and investors should buy HD at $138 with a target of $156 for a proposed return of about 12%.”
The stock made a new high on Tuesday at over $160.
The company is on a Jan. 31 fiscal year.
Standard & Poor’s raised their fiscal year 2018 earnings estimate to $7.20, up 2 cents as a result of HD’s April quarter EPS of $1.67, a surprise of 6 cents above the consensus estimate.
Revenues were higher, as well, on 5.5% higher same-store sales, thus S&P (CFRA) also raised their 12-month target for HD stock by $20 to $174 based on a revised earnings estimate of $8.15 (up 4 cents) for FY 2019.
Technically HD stock is in a broad bull market channel with near-term support at its 20-day moving average at $155 and resistance at Tuesday’s high at $161. The primary support is at the 50-day moving average and primary support line of the bull channel at about $150.
Very high volume accompanied Tuesday’s advance while yesterday’s selling was only half of Tuesday’s volume.
Once this stock settles down, following yesterday’s profit-taking, I assume that Home Depot will continue to rise within the confines of its bull channel. Thus, traders should use this pullback to buy HD stock at $155 with a target of $175.
— Sam Collins, Trade of the Day
Join the $39 Trading Revolution – Plus 1 Month FREE!
Short-term profits are now easy to grab. We DOUBLED our money in ONE day... and we're NOT day traders. It's a trading revolution, and it's long overdue. Click here to grab your share of the profits… Plus, Get 1 Month of Free Trades!
Source: Investor Place