Home Depot shares hit an all-time high Monday, and a technician says there’s more room to run.
The home improvement chain has been on a tear, but despite its strong performance this year, the stock, a member of the Dow Jones industrial average, has still underperformed the broader market, according to Carter Worth, head of technical analysis at Cornerstone Macro.
“It’s making all-time highs, 52-week highs, but it’s really lagged in many ways,” Worth said Friday on CNBC’s “Options Action.”
Over the past 18 months, Home Depot shares are up 22 percent while the Dow has risen 28 percent and the S&P 500 has climbed 23 percent.
Nevertheless, Worth said Home Depot’s stock is set up to catch up to the market. “The presumption is a breakout from these well-defined tops. I think it’s an opportunity.”
Over the past five years, “the stock has been just in the middle [of a channel]. I think we’re going to get back towards the highs in every distinct possibility,” Worth said.
“I want to be long Home Depot. I like it.”
Home Depot shares were trading around $163.45 midday Monday.