Tag Archives: GS

Crispr Therapeutics: Assessing The Recent Capital Financing

The reason why the growth stocks do so much better is that they seem to show gains in value in the hundreds of percent each decade. In contrast, it is an unusual bargain that is as much as 50 percent undervalued. The cumulative effect of this simple arithmetic should be obvious. – Philip Fisher (the Father of Growth Investing)

On Jan 05, 2018, the share price of Crispr Therapeutics (NASDAQ:CRSP), a bioscience focusing on gene-editing and CAR-T to treat serious conditions such as cancers and genetic diseases, continued its rally. The stock added another $2.90 (over 12% profits) to value at $26.81 for the said trading session. Since we recommended the company on Nov. 27, 2017 (just over a month) to subscribers of Integrated BioSci Investing, the stock added another $7.26 (or 37% in capital appreciation). This robust run-up is interesting because, on Jan. 04, 2018, the company announced that the 5M additional common shares issued on Jan 03 will be priced at $22.75.

Figure 1: Crispr stock chart. (Source: Stockcharts).

At Integrated BioSci Investing (IBI), we have much success in finding robust performers. For instance, Nektar Therapeutics (NASDAQ:NKTR) appreciated over 200% for subscribers. Exelixis Inc procured over 50% profits. In this report, we’ll assess the ramifications of the recent financing and to reaffirm the investment thesis on Crispr.

Fundamentals Analysis

Back in 2017, there were several stellar medical breakthroughs that have ramifications that can be as far reaching as the introduction of chemotherapy more than a decade prior. Accordingly, the US FDA approved Yescarta (a CAR-T indicated for the treatment of non-Hodgkin lymphoma). The said molecule was innovated by Kite Pharma (NASDAQ:KITE) – a firm acquired by Gilead Sciences(NASDAQ:GILD). Moreover, the agency also approved the first gene therapy, Luxturna (voretigene neparvovec-rzyl), a molecule innovated by Sparks Therapeutics (NASDAQ:ONCE). It is a one-time treatment for patients afflicted with biallelic RPE65 mutation-associated retinal dystrophy.

In the midst of the aforesaid favorable regulatory environment for medical breakthroughs, the Switzerland-based company, Crispr Therapeutics is also brewing a revolutionary method of treating cancers and rare genetic diseases. As follows, CRISPR/Cas9 is a form of gene-editing currently being investigated in various conditions (as shown in the enriched pipeline in figure 2). The company also has a gene-editing enhanced form of CAR-T in development for various cancers. Of most interest is the lead molecule, CTX-001 (also a gene-editing therapeutic) that can be potentially used for the management of serious blood disorders: beta-thalassemia and sickle cell disease (SCD).

Figure 2: Therapeutic pipeline. (Source: Crispr).

Final Remarks

As alluded, Crispr recently issued another 5M common shares at the price of $22.75. The company also granted the underwriters a 30-day option to purchase up to 750K of its common shares. The expected gross proceeds from this offering are roughly $113.75M (excluding any exercise of the underwriters option to purchase additional shares). Moreover, the offering is expected to close on Jan. 09. The company employed Goldman Sachs (NYSE:GS), Piper Jaffray (NYSE:PJC), Barclays Capital (NYSE:BCS), and Guggenheim Securities as joint book-running managers for the said offerings. We strongly believe that the aforesaid capital financing is both strategic and prudent, as substantial capital (in the ballpark of over a billion dollars) is needed to fund a molecule from bench research to commercialization. With the share price appreciating, it is wise that the firm issued new shares to strengthen its capital for further pipeline innovation. There is an in-depth Integrated BioSci version of this research, which is available in advanced to subscribers of Integrated BioSci Investing.

Authors Notes: Were honored that you took the time out of your busy day to read our market intelligence. Founded by Dr. Hung Tran, MD, MS, CNPR, (in collaborations with Dr. Tran BioSci analyst, Ngoc Vu, and other PhDs), Integrated BioSci Investing (IBI) marketplace research is delivering stellar returns since inceptions. To name a few, Nektar Therapeutics (NASDAQ:NKTR) procured more than 210% profits; Spectrum Pharmaceuticals (NASDAQ:SPPI) delivered over 180% gains; Kite Pharma netted 82%. Exelixis Inc (NASDAQ:EXEL) earned greater than 50% capital appreciation. Our secret sauce is extreme due diligence coupled with expert data analysis. The service features a once-weekly exclusive in-depth Integrated BioSci Alpha-Intelligence article (in the form of research, reports, or interviews), daily individual stocks consulting, and model portfolios.

Notably, well increase our price soon. SUBSCRIBE to our marketplace research now to lock in the legacy price and save money in the future. To receive real-time alerts on our articles as well as blogs, be sure to check out our profile page and CLICK the orange FOLLOW button . Asides the exclusivities, this article is the truncated version of the research we published in advance to IBI subscribers. Further, you can read up on Dr. Trans background by following this link.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Should You Buy Lululemon Athletica Inc. Stock in 2018? 3 Pros, 3 Cons

Lululemon Athletica inc. (NASDAQ:LULU) is back in shape. It had a rough couple of years, including product recalls and its infamous see-through pants problem. However, management has righted the ship. LULU stock is back near all-time highs, quarterly earnings results are solid, and the company is targeting big expansion plans overseas.

Is this finally the moment for Lululemon stock to start working out for shareholders again? Or will the company’s lingering issues send it tumbling? Here are the pros and cons for LULU stock heading into 2018.

LULU Stock Cons

Not a Cheap Stock: Lululemon is back to a premium valuation, no matter how you slice it. The company is trading at 38x trailing and 27x forward earnings. That’s not anywhere near the industry median for apparel.

The company is at a steep 4x price/sales ratio. And you had better believe in the company’s brand, because there are few other hard assets here. The company trades at more than 7x book value.

That’s all fine and well if Lululemon is able to grow for many years to come. However, if it’s just the first mover on an increasingly crowded fashion trend, those valuation ratios will not hold up over time. Competitors such as Nike Inc (NYSE:NKE) remain dangerous as well.

Is Athleisure a Fad? A long-running point of debate for LULU stock is whether the company’s products are a fad or the marker of a new persistent trend. Both sides make fair points. And to be honest, it could probably still go either way.

That said, Lululemon’s proponents will note that the company has continued its growth well past where initial doubters thought it’d reach. There’s no sign that yoga, as a trend, is dying off either. LULU stock bears, on the other hand, will point to Lululemon’s struggling Canadian sales.

Remember that the company is originally from Vancouver. It developed its brand and market share there first. So it is somewhat troubling that Canadian sales volume is down three years in a row, and by meaningful amounts.

That said, the Canadian economy isn’t performing that well right now, and besides, Canada is only 20% of Lululemon’s business today. Still, declining Canadian sales do suggest that the company will reach saturation on athleisure at some point.

Key Technical Resistance Level: LULU stock has had a bad history with the $80/share level. The stock originally hit the $80 level back in 2012 during its first big growth phase. Shares consolidated and then made another push for $80 in 2013. LULU stock did nothing until 2016, when it again rallied sharply, hit $80, and then went south.

After dropping below $50 earlier this year, investors have given LULU one more chance. Shares are almost back up to the pivotal $80 mark as we await all-important holiday sales figures.

Needless to say, anything less than great numbers, and LULU is going to get turned back yet again at this key overhead level. On the plus side, should Lululemon hit it out of the park for Q4, you’d likely see a large technical move up to the $90 area as traders buy the breakout over five-year resistance.

LULU Stock Pros

Making New Markets: The bulls have a decent retort for the “athleisure is tapped out” argument above. It’s that Lululemon is successfully stretching into new markets beyond just western women.

For one, we’re seeing the rise of male athleisure clothing. Lululemon is up to 18% of its customers being men, and the company sees this moving toward a quarter of its customers within the next few years. It’s unlikely Lululemon will ever be a company whose stores are full of men, but even a modest presence in male athletic apparel can move the needle.

On top of that, Lululemon is largely going abroad for future growth, with initiatives such as “Unroll China.” This year’s Unroll China event had expected participation of 10,000 people across six Chinese cities. There is reason to expect that Lululemon’s brand and products will make a good fit with consumers’ tastes in that region.

Strong Quarterly Results: To break through the long-standing barrier at $80/share and finally make new highs, LULU stock needs a solid holiday season. If last quarter is any guide, things are trending well for the company.

The company grew revenues by almost 14% year-over-year this quarter. That marked the company’s best growth rate since June 2016. The company grew net income by 16%.

That even faster pickup reflected Lululemon’s rising profit margins as it regains pricing power as the memory of the product defects starts to fade. And given the company’s quickly rising cash position, it authorized a sporty new $200-million stock buyback.

Activist Investor: For investors in LULU stock, the last five years have been a disappointment. With the company’s great brand and seemingly strong growth potential, not surprisingly, now shareholders are getting more vocal.

Their wishes for a more active role in management’s strategy appear set to play out. Major LULU stock holder Advent International — which bought out half of the founder’s stake in 2014 — is getting more directly involved.

Lululemon appointed Tricia Patrick, a managing director at Advent, to their board of directors at the end of August. Ms. Patrick previously worked in private equity for both Goldman Sachs Group Inc (NYSE:GS) and Bain Capital.

She brings the sort of activist shareholder value-focused point of view that Lululemon appears to be lacking. While there is no guarantee that activist shareholder strategies can get the LULU stock price up, it’s a reason for optimism.

Verdict for LULU Stock

LULU stock isn’t cheap at the moment. And it’s up against a key resistance level where it has failed many times before. So there is plenty of reason to be cautious right now.

With that said, if you believe athleisure has more room to grow, LULU stock could have a lot more upside. Just wait for a break above the key $80 level. It’ll be a safer trade once the stock breaks out, and short sellers start feeling the need to cover their positions.

At the time of this writing, the author held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek.

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Apple, Intel Sink DJIA Tuesday

December 26, 2017: Markets opened lower Tuesday following the three-day Christmas holiday weekend. The DJIA briefly turned higher, but traded for most of the day with a small loss. Energy was the leading sector but couldn’t overcome weakness in tech and utilities. WTI crude oil for February delivery settled at $59.97 a barrel, up 2.6% for the day following a pipeline explosion in Libya. The is WTI’s highest close in more than two years. February gold added 0.7% on the day to settle at $1,287.50. Equities were headed for a lower close shortly before the bell as the DJIA traded down 0.11% for the day, the S&P 500 traded down 0.18%, and the Nasdaq Composite traded down 0.41%.

Bitcoin futures for January traded at $15,920, up about 12.6%, on the CME after opening at $13,900 this morning. Only 374 contracts had been traded in the session and open interest is just 489.

The DJIA stock posting the largest daily percentage loss ahead of the close Tuesday was Apple Inc. (NASDAQ: AAPL) which traded down 2.63% at $170.41. The stock’s 52-week range is $114.76 to $177.20. Volume was nearly 10% above the daily average of around 26 million shares. Some analysts said iPhone X sales would be down sharply from quarterly.

Intel Corp. (NASDAQ: INTC) traded down 1.50% at $46.00. The stock’s 52-week range is $33.23 to $47.64. Volume was less than half the daily average of around 29 million. The semiconductor maker had no specific news.

DowDuPont Inc. (NYSE: DWDP) traded down 1.03% at $71.37. The stock’s 52-week range is $56.52 to $73.85. Volume was down more than 70% from the daily average of around 7.3 million shares. The company had no specific news.

The Goldman Sachs Group Inc. (NYSE: GS) traded down 0.60% at $257.41. The stock’s 52-week range is $209.62 to $262.14. Volume was about a 60% below the daily average of around 2.7 million shares. The investment bank had no specific news.

Of the Dow stocks, 13 are on track to close higher Tuesday and 17 are set to close lower.
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Meet the Preliminary Dogs of the Dow for 2018

Should You Buy Lululemon Athletica Inc. Stock in 2018? 3 Pros, 3 Cons

Lululemon Athletica inc. (NASDAQ:LULU) is back in shape. It had a rough couple of years, including product recalls and its infamous see-through pants problem. However, management has righted the ship. LULU stock is back near all-time highs, quarterly earnings results are solid, and the company is targeting big expansion plans overseas.

Is this finally the moment for Lululemon stock to start working out for shareholders again? Or will the company’s lingering issues send it tumbling? Here are the pros and cons for LULU stock heading into 2018.

LULU Stock Cons

Not a Cheap Stock: Lululemon is back to a premium valuation, no matter how you slice it. The company is trading at 38x trailing and 27x forward earnings. That’s not anywhere near the industry median for apparel.

The company is at a steep 4x price/sales ratio. And you had better believe in the company’s brand, because there are few other hard assets here. The company trades at more than 7x book value.

That’s all fine and well if Lululemon is able to grow for many years to come. However, if it’s just the first mover on an increasingly crowded fashion trend, those valuation ratios will not hold up over time. Competitors such as Nike Inc (NYSE:NKE) remain dangerous as well.

Is Athleisure a Fad? A long-running point of debate for LULU stock is whether the company’s products are a fad or the marker of a new persistent trend. Both sides make fair points. And to be honest, it could probably still go either way.

That said, Lululemon’s proponents will note that the company has continued its growth well past where initial doubters thought it’d reach. There’s no sign that yoga, as a trend, is dying off either. LULU stock bears, on the other hand, will point to Lululemon’s struggling Canadian sales.

Remember that the company is originally from Vancouver. It developed its brand and market share there first. So it is somewhat troubling that Canadian sales volume is down three years in a row, and by meaningful amounts.

That said, the Canadian economy isn’t performing that well right now, and besides, Canada is only 20% of Lululemon’s business today. Still, declining Canadian sales do suggest that the company will reach saturation on athleisure at some point.

Key Technical Resistance Level: LULU stock has had a bad history with the $80/share level. The stock originally hit the $80 level back in 2012 during its first big growth phase. Shares consolidated and then made another push for $80 in 2013. LULU stock did nothing until 2016, when it again rallied sharply, hit $80, and then went south.

After dropping below $50 earlier this year, investors have given LULU one more chance. Shares are almost back up to the pivotal $80 mark as we await all-important holiday sales figures.

Needless to say, anything less than great numbers, and LULU is going to get turned back yet again at this key overhead level. On the plus side, should Lululemon hit it out of the park for Q4, you’d likely see a large technical move up to the $90 area as traders buy the breakout over five-year resistance.

LULU Stock Pros

Making New Markets: The bulls have a decent retort for the “athleisure is tapped out” argument above. It’s that Lululemon is successfully stretching into new markets beyond just western women.

For one, we’re seeing the rise of male athleisure clothing. Lululemon is up to 18% of its customers being men, and the company sees this moving toward a quarter of its customers within the next few years. It’s unlikely Lululemon will ever be a company whose stores are full of men, but even a modest presence in male athletic apparel can move the needle.

On top of that, Lululemon is largely going abroad for future growth, with initiatives such as “Unroll China.” This year’s Unroll China event had expected participation of 10,000 people across six Chinese cities. There is reason to expect that Lululemon’s brand and products will make a good fit with consumers’ tastes in that region.

Strong Quarterly Results: To break through the long-standing barrier at $80/share and finally make new highs, LULU stock needs a solid holiday season. If last quarter is any guide, things are trending well for the company.

The company grew revenues by almost 14% year-over-year this quarter. That marked the company’s best growth rate since June 2016. The company grew net income by 16%.

That even faster pickup reflected Lululemon’s rising profit margins as it regains pricing power as the memory of the product defects starts to fade. And given the company’s quickly rising cash position, it authorized a sporty new $200-million stock buyback.

Activist Investor: For investors in LULU stock, the last five years have been a disappointment. With the company’s great brand and seemingly strong growth potential, not surprisingly, now shareholders are getting more vocal.

Their wishes for a more active role in management’s strategy appear set to play out. Major LULU stock holder Advent International — which bought out half of the founder’s stake in 2014 — is getting more directly involved.

Lululemon appointed Tricia Patrick, a managing director at Advent, to their board of directors at the end of August. Ms. Patrick previously worked in private equity for both Goldman Sachs Group Inc (NYSE:GS) and Bain Capital.

She brings the sort of activist shareholder value-focused point of view that Lululemon appears to be lacking. While there is no guarantee that activist shareholder strategies can get the LULU stock price up, it’s a reason for optimism.

Verdict for LULU Stock

LULU stock isn’t cheap at the moment. And it’s up against a key resistance level where it has failed many times before. So there is plenty of reason to be cautious right now.

With that said, if you believe athleisure has more room to grow, LULU stock could have a lot more upside. Just wait for a break above the key $80 level. It’ll be a safer trade once the stock breaks out, and short sellers start feeling the need to cover their positions.

At the time of this writing, the author held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek.

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5 Dow Titans Going Vertical

U.S. equities are pushing higher on Thursday as investors celebrate the passage of the GOP’s tax reform bill, look ahead to the holiday-shortened week next week and take in all the positive end-of-year vibes.

The stock market is on the verge of posting the first “perfect year” ever with 12 consecutive monthly rises.

While a lot of good news has been priced into stocks already, there is obviously further upside as investors prepare for earnings repatriation, increased earnings power and larger paychecks for millions of Americans.

Here are five blue-chip titans that are surging in response: 

Dow Stocks to Buy: Apple (AAPL)

Dow Stocks to Buy: Apple (AAPL)investorplace.com/wp-content/uploads/2017/12/aapl122117-300×248.png 300w, investorplace.com/wp-content/uploads/2017/12/aapl122117-36×30.png 36w, investorplace.com/wp-content/uploads/2017/12/aapl122117-200×165.png 200w, investorplace.com/wp-content/uploads/2017/12/aapl122117-364×300.png 364w, investorplace.com/wp-content/uploads/2017/12/aapl122117-116×96.png 116w, investorplace.com/wp-content/uploads/2017/12/aapl122117-100×83.png 100w, investorplace.com/wp-content/uploads/2017/12/aapl122117-152×125.png 152w, investorplace.com/wp-content/uploads/2017/12/aapl122117-61×50.png 61w, investorplace.com/wp-content/uploads/2017/12/aapl122117-78×64.png78w, investorplace.com/wp-content/uploads/2017/12/aapl122117-145×120.png 145w” sizes=”(max-width: 520px) 100vw, 520px” />

Apple Inc. (NASDAQ:AAPL) shares look ready to rise out of a two-month consolidation range as the iPhone X supply stabilizes and investors look ahead to fresh catalysts like the launch of the HomePod speaker and the iMac Pro. There has been some analyst chatter of potentially underwhelming iPhone X demand, but that’s hard to see with delivery times only now catching up to requests.

The company will next report earnings on Jan. 30 after the close. Analysts are looking for earnings of $3.77 per share on revenues of $86.3 billion. When the company last reported on Nov. 2, earnings of $2.07 beat estimates by 20 cents on a 12.2% rise in revenues.

Dow Stocks to Buy: Caterpillar (CAT)

Dow Stocks to Buy: Caterpillar (CAT)investorplace.com/wp-content/uploads/2017/12/cat122117-300×248.png 300w, investorplace.com/wp-content/uploads/2017/12/cat122117-36×30.png 36w, investorplace.com/wp-content/uploads/2017/12/cat122117-200×165.png 200w, investorplace.com/wp-content/uploads/2017/12/cat122117-364×300.png 364w, investorplace.com/wp-content/uploads/2017/12/cat122117-116×96.png 116w, investorplace.com/wp-content/uploads/2017/12/cat122117-100×83.png 100w, investorplace.com/wp-content/uploads/2017/12/cat122117-152×125.png 152w, investorplace.com/wp-content/uploads/2017/12/cat122117-61×50.png 61w, investorplace.com/wp-content/uploads/2017/12/cat122117-78×64.png 78w,https://investorplace.com/wp-content/uploads/2017/12/cat122117-145×120.png 145w” sizes=”(max-width: 520px) 100vw, 520px” />

Caterpillar Inc. (NYSE:CAT) shares are going parabolic now, exploding out of the short consolidation rate between October and November to hit new highs representing a 3x gain from its early 2016 lows. Analysts at Citigroup recently upgraded their price target to $160 from $145.

The company will next report results on Jan. 25 before the bell. Analysts are looking for earnings of $1.75 per share on revenues of nearly $12 billion.

When the company last reported on Oct. 24, earnings of $1.95 beat estimates by 68 cents on a 24.6% rise in revenues.

Dow Stocks to Buy: Chevron (CVX)

Dow Stocks to Buy: Chevron (CVX)investorplace.com/wp-content/uploads/2017/12/cvs122117-300×248.png 300w, investorplace.com/wp-content/uploads/2017/12/cvs122117-36×30.png 36w, investorplace.com/wp-content/uploads/2017/12/cvs122117-200×165.png 200w, investorplace.com/wp-content/uploads/2017/12/cvs122117-364×300.png 364w, investorplace.com/wp-content/uploads/2017/12/cvs122117-116×96.png 116w, investorplace.com/wp-content/uploads/2017/12/cvs122117-100×83.png 100w, investorplace.com/wp-content/uploads/2017/12/cvs122117-152×125.png 152w, investorplace.com/wp-content/uploads/2017/12/cvs122117-61×50.png 61w, investorplace.com/wp-content/uploads/2017/12/cvs122117-78×64.png 78w,https://investorplace.com/wp-content/uploads/2017/12/cvs122117-145×120.png 145w” sizes=”(max-width: 520px) 100vw, 520px” />

Chevron Corporation (NYSE:CVX) shares are launching higher on Thursday, up 3.3% to jump over resistance near $120 going back to the summer of 2014. Not only has the stock completely erased the 2014-2015 drop related to the fall in crude oil prices, but it has more than doubled from its lows to reach new records. Analysts at Cowen raised their price target to $160, citing the performance of the company’s operations in the Permian Basin.

The company will next report results on Jan. 26 before the bell. Analysts are looking for earnings of $1.25 per share on revenues of $38.59 billion. When the company last reported on Oct. 27, earnings of $1.03 beat estimates by six cents on a 20.1% rise in revenues.

Dow Stocks to Buy: Goldman Sachs (GS)

 Dow Stocks to Buy: Goldman Sachs (GS)investorplace.com/wp-content/uploads/2017/12/gs122117-300×248.png 300w, investorplace.com/wp-content/uploads/2017/12/gs122117-36×30.png 36w, investorplace.com/wp-content/uploads/2017/12/gs122117-200×165.png 200w, investorplace.com/wp-content/uploads/2017/12/gs122117-364×300.png 364w, investorplace.com/wp-content/uploads/2017/12/gs122117-116×96.png 116w, investorplace.com/wp-content/uploads/2017/12/gs122117-100×83.png 100w, investorplace.com/wp-content/uploads/2017/12/gs122117-152×125.png 152w, investorplace.com/wp-content/uploads/2017/12/gs122117-61×50.png 61w, investorplace.com/wp-content/uploads/2017/12/gs122117-78×64.png 78w,https://investorplace.com/wp-content/uploads/2017/12/gs122117-145×120.png 145w” sizes=”(max-width: 520px) 100vw, 520px” />

Goldman Sachs Group Inc (NYSE:GS) shares are pushing to new highs, rising further out of its October-November consolidation range, eclipsing the highs seen earlier this year near $255. The stock will benefit from the maintaining of the carried interest loophole and likely positive impact the tax legislation will have on capital markets activity as foreign earnings are brought back home (stock buybacks, dividends, etc.).

The company will next report earnings on Jan. 17 before the bell. Analysts are looking for earnings of $5.16 per share on revenues of $7.8 billion.

When the company last reported on Oct. 17, earnings of $5.02 per share beat estimates by 85 cents on a 2% rise in revenues.

Dow Stocks to Buy: Home Depot (HD)

Dow Stocks to Buy: Home Depot (HD)investorplace.com/wp-content/uploads/2017/12/122117hd-300×248.png 300w, investorplace.com/wp-content/uploads/2017/12/122117hd-36×30.png 36w, investorplace.com/wp-content/uploads/2017/12/122117hd-200×165.png 200w, investorplace.com/wp-content/uploads/2017/12/122117hd-364×300.png 364w, investorplace.com/wp-content/uploads/2017/12/122117hd-116×96.png 116w, investorplace.com/wp-content/uploads/2017/12/122117hd-100×83.png 100w, investorplace.com/wp-content/uploads/2017/12/122117hd-152×125.png 152w, investorplace.com/wp-content/uploads/2017/12/122117hd-61×50.png 61w, investorplace.com/wp-content/uploads/2017/12/122117hd-78×64.png 78w,https://investorplace.com/wp-content/uploads/2017/12/122117hd-145×120.png 145w” sizes=”(max-width: 520px) 100vw, 520px” />

Home Depot Inc (NYSE:HD) shares are extending higher, rising over their early December highs to cap a gain of more than 15% from their early November lows. A combination of solid home construction activity, limited supply and hurricane rebuilding are creating a perfect storm for investors.

The company will next report results on Feb. 20 before the bell. Analysts are looking for earnings of $1.62 per share on revenues of $23.6 billion. When the company last reported on Nov. 14, earnings of $1.84 per share beat estimates by two cents on an 8.1% rise in revenues.

Anthony Mirhaydari is founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.

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