Home Depot (NYSE: HD) saw its stock hit an all-time high on Monday after leading the Dow Jones industrial average last week as the index's top-performing name. Now, some money managers see shares of the home improvement chain heading higher against a strong economic backdrop.
They cited rising household net wealth and steadily rising hourly average wages, two facets of the U.S. consumer that make him confident in Home Depot at current levels. Consumers are more likely to spend on home improvement projects if they're earning more, the thinking goes.
Craig Johnson, chief market technician at Piper Jaffray, opines that the stock looks attractive on a technical level. He's also bullish on the name due to its relationship with the trend in U.S. private construction spending. The stock and that measure have been steadily rising together.
"Seeing no change in that trend, we'd not expect to see any sort of change in the Home Depot trend, either," Johnson told the media last week" adding he'd buy the name on a technical breakout.
Shares advanced $1.51 this morning to $212.20
