Book Profits in Consumer Discretionary Stocks
Home Depot ($52.82) traded to a multi-year high of $54.28 on July 27. My quarterly value level is $48.35 with a weekly pivot at $53.03 and a quarterly risky level at $54.42.
Home Depot reported quarterly results before the market opened this morning that beat earnings-per-share estimates and raised its guidance for the full year above analyst expectations. Shares could find the strength to reach my quarterly risky level at $54.42, where investors should consider booking profits.
Lowe's (LOW) ($26.55) traded to a multi-year high of $32.29 on April 16. My annual value level is $25.06 with a weekly pivot at $25.77 and a quarterly risky level at $30.71.
Nike ($95.85) traded to an all time high at $114.81 on May 2. My weekly value level is $86.30 with a semiannual pivot at $92.33 and a monthly risky level at $106.32. Nike reported weaker-than-expected earnings on June 29, citing higher expenses and a restructuring charge, and its shares fell to a low of $85.10 that day.Amazon.com ($232.44) traded to an all-time high of $246.71 on Oct. 14. My monthly value level is $227.60 with a semiannual risky level at $236.23. Priceline (PCLN) ($562.00) traded to a multi-year high of $774.96 on April 10. My semiannual value level is $493.88 with a semiannual risky level at $615.29. On Aug. 7, Priceline gave a disappointing forecast for its third quarter that it blamed on the weak economy in Europe, and the stock traded as low as $553.43 on Aug. 9. As of publication, the author had no positions in the stocks mentioned today, and no other conflicts. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts