Markets

At Home reports Q1 results June 7

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What's Happening

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.

Technical Analysis

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.

Analyst's Thoughts

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

Bullish 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.

Bearish Trade

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

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Originally published on InvestorsObserver.com


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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