Home Depot Inc. (NYSE:HD) stock has gained 8.80% in the past month. The gains reflect an optimism that Home Depot will report robust earnings in the second quarter. The optimism grew as Home Depot beat earnings in the first quarter. A reported $4.09 per share earnings was higher than $3.69 per share estimates. The company raised the forecast for FY22 on the strengths of the home improvement.
Home Depot reports the second quarter results on August 16, before the market open. Analysts have earmarked a EPS of $4.95, higher than $4.53 the prior year. The shares have been rising in anticipation of a strong quarter.
On Wall Street, Home Depot is rated with a moderate buy. Out of 23 Wall Street analysts tracked by TipRanks, 17 have a buy rating and 6 hold, with no sell. The average price target is $346.18, with an upside potential of 10.55%. The quarter results could be the catalyst to take the stock higher.
HD eyes the next resistance zone at around $343
Source – TradingView
HD trades above the 21-day and 50-day moving averages. The 50-day moving average joined the support on July 14, the first time since mid-January. The MACD indicator is bullish on the stock, which already trades above the $295 support. We set the next resistance for the stock at $343.
HD will remain bullish if the quarter results come strong. The potential target for the stock is $343 and beyond, depending on the bullish momentum. If the quarter results disappoint, the stock could drop to $295. Investors should keep a tab on the quarter performance and buy on any potential retracement.
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