Home goods retailer At Home ( HOME ) will report its first-quarter numbers after the market close on June 7. Analysts forecast earnings of $0.27 for the quarter. HOME has been a top performing stock over the last year, with shares up 10.1% in 2018.
HOME was recently trading at $34.83, down $3.00 from its 12-month high and $16.43 above its 12-month low. Technical indicators for HOME are bullish with a strong upward trend. The stock has recent support above $34.00 and recent resistance below $37.00. Of the eight analysts who cover the stock, seven rate it a "strong buy", and one rates it a "hold". HOME gets a score of 85 from InvestorsObserver's Stock Score Report.
Ongoing strength in the housing market has kept HOME shares trending higher. While rising rates do pose a risk to the overall housing market, and housing-related stocks, for now rates remain incredibly low on an historic basis, and it will take several additional rate hikes before rates reach a point that could materially impact the sector. Analysts remain very upbeat on HOME, and expect to see the company grow earnings by 24.8% per annum over the next five years. Traders are looking for a small earnings beat for the quarter, with a whisper number of 28 cents per share, a penny above the consensus. Analysts have set a $37.13 price target on the stock.
Stock Only Trade
If you want a bullish hedged trade on the stock, consider a July 25/30 bull-put credit spread for a 40-cent credit. That's a potential 8.7% return (64.8% annualized*) and the stock would have to fall 12.7% to cause a problem.
If you want to take a bearish stance on the stock at this time, consider a July 40/45 bear-call credit spread for a $0.35 credit. That's a potential 7.5% return (56.1% annualized*) and the stock would have to rise 15.8% to cause a problem.
Covered Call Trade
Originally published on InvestorsObserver.com