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Another home improvement retailer that insiders are active in here is
Home Depot (
HD), which sells an assortment of building materials, home improvement and lawn and garden products and provides a number of services. Insiders are buying this stock into decent strength, since shares are up 22% so far in 2013.
Home Depot has a market cap of $108 billion and an enterprise value of $116 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 22.52 and a forward price-to-earnings of 17.41. Its estimated growth rate for this year is 19%, and for next year it's pegged at 18.4%. This is not a cash-rich company, since the total cash position on its balance sheet is $3.42 billion and its total debt is $12.76 billion. This stock currently sports a dividend yield of 2.1%.
A director just
bought 100,000 shares, or $752,000 worth of stock, at $75.20 per share.
From a technical perspective, HD is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock recently formed a double bottom chart pattern after it found support just above its June low of $72.03 a share after the stock hit $72.21 a share this move. Shares of HD have started to rebound higher off that $72.21 low and it's now moving within range of triggering a near-term breakout trade.
If you're in the bull camp on HD, then look for long-biased trades as long as this stock is trending above some near-term support levels at $74 or at $73, and then once it breaks out above its 50-day at $76.85 a share with high volume. Look for a sustained move or close above that level with volume that registers near or above its three-month average action of 7.25 million shares. If that breakout triggers soon, then HD will set up to re-test or possibly take out its next major overhead resistance levels at $80 to its 52-week high at $81.56 a share.