Home Depot shares gain the most in three weeks on Wednesday, as second-quarter results top market expectations

Following the slump on Tuesday, the shares of Home Depot Inc (HD) registered their largest daily increase in three weeks yesterday, as the companys second-quarter performance outstripped market expectations.

Home Depot shares closed higher for the third time in the past six trading sessions on Wednesday. It has also been the steepest daily surge since July 25th. The stock went up 1.39% ($2.08) to $152.25, with the intraday high and the intraday low being at $152.95 and $151.23 respectively. In the week ended on August 13th the shares of the home improvement chain added 1.39% to their market value compared to a week ago, which marked a third consecutive period of gains. The stock has extended its advance to 1.77% so far during the current month, following a 2.48% slump in July. The latter has been a third consecutive monthly drop and also the sharpest one since October 2016. For the entire past year, Home Depot shares gained 1.38%.

The home improvement chains net earnings rose to $2.7 billion ($2.25 per share) during the quarter ended on July 31st from $2.4 billion ($1.97 per share) during the same period of fiscal year 2016. Analysts on average had anticipated earnings of $2.21 per share.

Total revenue went up 6.2% to $28.1 billion during the latest three-month period, which beat the median analyst estimate by $300 million.

Meanwhile, comparable store sales were reported to have increased 6.3% during the second quarter of fiscal year 2017, while comparable sales for stores in the United States went up 6.6%.

Client transactions were 2.8% more during the latest quarter, while the average price rose 3.6% to $63.05.

“We were pleased with our results this quarter as our customers rewarded us with the highest quarterly sales in company history”, Craig Menear, Home Depots chairman, CEO and president, was quoted as saying by PR Newswire. “We also achieved the highest quarterly net earnings in company history. These results were made possible by our hard working associates and the outstanding values brought forth by our supplier partners.”

Home Depot also revised up its 2017 sales growth forecast and now projects a 5.3% increase in total sales and a 5.5% increase in comparable sales.

The company now projects that its earnings per share for fiscal year 2017 will be $7.29, or a revision up from $7.15, as expected previously.

According to CNN Money, the 28 analysts, offering 12-month forecasts regarding Home Depot’s stock price, have a median target of $175.00, with a high estimate of $182.00 and a low estimate of $152.00. The median estimate is a 14.94% surge compared to the closing price of $152.25 on August 16th.

The same media also reported that 19 out of 30 surveyed investment analysts had rated Home Depot’s stock as “Buy”, while 9 – as “Hold”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Home Depot stock are presented as follows:

R1 – $152.41
R2 – $152.57
R3 (Range Resistance – Sell) – $152.72
R4 (Long Breakout) – $153.20
R5 (Breakout Target 1) – $153.75
R6 (Breakout Target 2) – $153.98

S1 – $152.09
S2 – $151.93
S3 (Range Support – Buy) – $151.78
S4 (Short Breakout) – $151.30
S5 (Breakout Target 1) – $150.75
S6 (Breakout Target 2) – $150.52

By using the traditional method of calculation, the weekly levels of importance for Home Depot Inc (HD) are presented as follows:

Central Pivot Point – $154.44
R1 – $156.42
R2 – $157.95
R3 – $159.93
R4 – $161.90

S1 – $152.91
S2 – $150.93
S3 – $149.40
S4 – $147.86

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