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.

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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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