Here's the one-year price and revenue chart for LOW and it looks a lot like HD's.
For the time being, we might have seen the highs for both LOW and HD. Both companies are selling at rich earnings multiples both trailing and forward (one-year). Both companies dividend yield-to-price are at puny levels of around 1.8%. That's low when compared to another DJIA stock,
, which yields nearly 3%.
So my forecast is for partly cloudy skies and a 50% chance of a little more share-price correction for HD, perhaps on the magnitude of what happened to LOW on Monday, depending on HD's numbers. The lower Bollinger Band price range for HD may suggest the downside may be around $63.
Then again, if you believe in HD, and if the company guides confidently for the quarters ahead, it may be off to the races" towards hitting the consensus one-year price target of nearly $70.
Seasoned investors may want to nibble just in case the rest of this week continues Monday's miserable market mood. Don't be fooled though, the bull market in stocks most likely has a long way to run.
At the time of publication the author had no position in any of the stocks mentioned.
This article was written by an independent contributor, separate from TheStreet's regular news coverage.
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