Emma Duncan
1 min read
Home Depot Inc (NYSE:HD) stock is 0.2% lower to trade at $314.45 this afternoon, slated to snap a six-day winning streak as the shares loom just below $320. The home improvement stock bounced off its early October lows and enjoyed a bull gap that led to this past Monday’s surge back above the 50-day moving average. This move could even bring bullish implications, should history be any indicator.
Per Schaeffer’s Senior Quantitative Analyst Rocky White, this “crossover” event has happened 16 other times over the last 10 years. Home Depot stock was higher one month later 88% of the time after these signals, averaging an 5.3% gain. From its current perch, a move of this magnitude would put the shares back above $330 for the first time since August.
Until the equity’s mid-November earnings report, there is plenty of room for upgrades to enter the ring. Heading into today, 13 of the 37 covering brokerages sport a “hold” or “strong sell” recommendation.
Lastly, Home Depot stock has tended to outperform options traders’ volatility expectations as well. This is per its Schaeffer’s Volatility Scorecard (SVS) of 80 out of 100, indicating now is a good time to be a buyer.
