The Home Depot, Inc. : Wedge Up
By Oscar Salza
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$52.29 | $0 | $49.8 | -100% |
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.