Connect with us

Hi, what are you looking for?

Stocks

Improve Your Portfolio Performance With This Improving Stock

I’m seeing more and more industry groups that have either broken out above August highs or on the verge of doing so. Meanwhile, I believe it’s important to focus on individual stocks within these improving groups for possible trading candidates. I prefer sticking with leading stocks in leading industry groups. Accordingly, check out the home improvements area ($DJUSHI), along with one leading stock in the space:

There are a number of technical positives on this chart, but I want to see the DJUSHI clear overhead price resistance just beneath 720 AND see LOW make its key breakout above 215. That combination would suggest higher prices and further relative outperformance ahead.

The next question might be, “well, what about Home Depot (HD)?” I use current relative strength to decide the likely relative performance in the weeks and months ahead. Wall Street has clearly decided that LOW is the better place to be – ever since the pandemic hit:

This LOW:HD relative chart shows that LOW bottomed relative to HD in March 2020. They’ve significantly outperformed ever since. Personally, I’d stick with LOW over HD – until this relative chart proves otherwise. The green arrow is my relative “line in the sand”. A break beneath this would suggest that I at least consider replacing LOW with HD. Until then, stick with the leader.

LOW was added to our Income Portfolio a week ago as it’s not only a leading stock in a leading industry group, but it also has a nice 1.96% dividend yield to add to any further capital appreciation. On Monday, I’ll feature another of my favorite stocks that I added to our portfolio lineup last week. I see significant potential ahead for this one. Simply CLICK HERE and join our growing FREE EB Digest newsletter and we’ll get that chart out to you on Monday.

Happy trading!

Tom

    You May Also Like

    Sports

    The 2023 NTT IndyCar season kicks off this weekend in Florida following an offseason of change in the paddock. Eight full-time IndyCar drivers —...

    Sports

    Four division titles — AFC East, NFC East, AFC South and NFC South — will be decided in NFL Week 18. In all, 11...

    Sports

    Kalen DeBoer says Nick Saban will retain ‘100% access’ to Alabama football program, with DeBoer’s blessingNick Saban wasn’t over Kalen DeBoer’s shoulder at introductory...

    Sports

    The Kansas City Chiefs and Miami Dolphins have weathered various storms throughout the regular season, from injuries to inconsistent play, but on Saturday, both...

    Disclaimer: hotopportunitynow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023 hotopportunitynow.com | All Rights Reserved