This Retailer Is Set Up for 36% Gains By Chris Igou, analyst, True Wealth
You've been hearing about the "death of retail" for years... We've covered stories like this many times in DailyWealth. It's an unavoidable trend taking place in our economy. E-commerce giants like Amazon (AMZN) make life easier by shipping just about anything you need straight to your door. Why bother driving from store to store, trying to hunt down a few obscure items... when you can find them online, for the same prices, and get them the next day? Buying trends have changed. Thousands of stores have closed. And department-store chains and other brick-and-mortar vendors are fighting just to get by. The death of retail is real. But it's not going to "kill" every retailer... One business has managed to buck this trend entirely. Its business is stronger than ever. And thanks to a rare setup, it's primed for a 36% move higher. Let me explain...
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Home Depot (HD) is one of the few retailers that's thriving in today's environment. It specializes in products better bought in person. And it has done incredibly well during today's housing boom. Importantly, it's now showing signs that a new breakout is starting. HD recently rallied 11 days in a row without a single down day. That hasn't happened since 1991. This is important because when "hot streaks" show up without any down days, it highlights a strengthening in the current trend. It can signal an acceleration in gains. So to get a gauge of what similar setups have meant for Home Depot, we looked at each time the stock rallied nine days or more in a row. Since 1991, those similar moves have happened five other times. Four of those times led to gains over the next year. And the only loss was less than 3%. Today, Home Depot is breaking out once again. Take a look... You can see the surge in the chart above. After trading sideways for a few months, Home Depot is back at new highs. Even more, further outperformance is likely in the coming months. Take a look at the gains that tend to follow breakouts like this... Home Depot has been an incredible performer for three decades... returning 17% in a typical year. That's in spite of the death of retail. And buying after setups like today's leads to even better results... Similar cases have led to 7% gains in three months, 17% gains in six months, and a 36% gain in the next year. That more than doubles a typical buy-and-hold strategy. Again, you might not expect this kind of opportunity if you're tracking the mainstream narrative. But the death of retail isn't killing every company in the space. Home Depot is succeeding in today's market. And history says this stock is poised for a big move higher from here. Good investing, Chris Igou INSIDE TODAY'S
DailyWealth Premium The top performers are likely to keep on winning... While stocks continue to soar, some sectors are breaking out even further. And that outperformance is likely to continue in the coming months... Click here to get immediate access. Market Notes THE SELF-STORAGE TREND PRODUCES ANOTHER WINNER Today's chart highlights a company that benefits when you've got too much stuff... Longtime readers know we seek out companies taking part in big secular trends. And in recent years, the self-storage trend has been in full swing... Folks are renting storage space more than ever, pushing occupancy rates and rents to record highs. That bodes well for today's company... Public Storage (PSA) is a $60 billion global self-storage leader. It operates nearly 3,000 facilities across the U.S. and Europe, totaling roughly 200 million square feet of rentable space. Now, folks are using this company to store extra stuff as spare rooms become home offices and closet space at home is limited. In the most recent quarter, Public Storage posted self-storage revenues of $841 million – up 23% year over year. As you can see in today's chart, PSA shares have been climbing. They're up about 60% over the past two years... And they recently hit a fresh all-time high. As long as people need a space to store their extra stuff, Public Storage should continue to benefit...
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