The Home Depot is a home improvement retailer that sells building materials and home improvement products. The Company sells a wide assortment of building materials, home improvement and lawn and garden products and provides a number of services. Home Depot operates throughout the U.S. (including Puerto Rico, the Virgin Islands and Guam), Canada, China, and Mexico.

Next August 14, the company will release its second quarter results. Despite a high valuation, analysts polled by Thomson Reuters have regularly revised upward the earning per share estimates. Consequently, profitability is improving, showing a relatively good financial health of the company. For Q2, analysts estimate earnings per share at $0.97.

Technically, the share has a bullish configuration in the mid and long term. Prices are supported by increasing moving averages as shown by the 20-period in weekly data and enclose the stock in a dynamic upward trend.

The current price could give a good opportunity to investors in order to buy the stock. We forecast a break out of mid-term resistance at USD 53.7, with a long term target price at USD 60. A stop loss will be placed at USD 51.