Stocks To Buy And Watch: 3 Leaders Hit New Highs, Including Home Depot; Should You Invest? – Investor's Business Daily

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Stocks to buy and watch amid the ongoing market rally include Home Depot (HD), Abbott Laboratories (ABT) and Hubbell (HUBB), all of which scored new highs on Tuesday.


Home Depot rose more than 6% in heavy volume Tuesday afternoon, after the retailer reported earnings before the market opened. Home Depot was among top retail names showing better-than-expected results, fueled by elevated demand in the third quarter.

Shares traded in a buy range above a 375.25 buy point in a three-weeks-tight pattern. The buy range extends to 394.01, which means shares still remain actionable at this point, according to MarketSmith chart analysis.

The home improvement giant reported Q3 earnings of $3.92 a share on sales of $36.8 billion, representing year-over-year growth of 23% and 4%, respectively. That easily beat FactSet’s forecast for $3.41 EPS on revenue of $34.88 billion.

Executives noted that sales accelerated in October compared with the month prior. Home Depot’s same-store sales jumped 6.1%, beating StreetAccount estimates for a 2.2% rise.

Stocks To Buy And Watch: Abbott Laboratories

Abbott Laboratories, a nutritional supplement and pharmaceutical company, broke out above a 129.63 buy point of a cup with handle. Shares remain inside the buy area after initially passing the entry on Monday.

On Oct. 20, the growth stock gapped up to reclaim its 50-day and 200-day lines after reporting strong earnings. Abbott earned $1.40 a share on revenue of $10.9 billion. Earnings increased 43% year over year, while sales jumped 23%, which qualifies Abbott as a growth stock by CAN SLIM standards.

Additionally, Abbott raised its 2021 adjusted earnings-per-share guidance from continuing operations to between $5 and $5.10.

However, this breakout is accompanied by a few red flags. Namely, the stock has a very low Relative Strength Rating of 55, well below the minimum of 80 we look for in leaders. Also, Abbott is expected to show year-over-year declines of 19% and 2%, respectively for its Q4 earnings and revenue.

Elsewhere, electrical wiring manufacturer Hubbell also scored a breakout on Tuesday as shares passed the 209.75 entry of a cup base. The stock has been creeping higher since reporting earnings on Oct. 26. The company also maintains a lower-than-ideal RS Rating of 70 out of a best-possible 99.

Along with its most recent earnings release, Hubbell also announced it is raising its quarterly dividend 7% to $1.05 per share. The dividend will be paid on Dec. 15 to shareholders of record on Nov. 30.

Follow Fox on Twitter at @foxonstocks for more market insight and commentary on top stocks to buy and watch.

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