Let’s talk about the retail sector…
The numbers are in, and consumers spent less than expected for the month of July. And while consumers still spent money in the retail sector specifically – the numbers fell flat.
Retail sales rose 1.2% for the month – a poor showing when you compare it to The Economist’s prediction of 2.3%. But here’s the thing. At this point, any growth is good growth. And just like the slow but steady decline of the jobs report, this 1.2% showing isn’t a complete letdown.
In fact, this increase marks the third straight monthly gain for retail, which plunged 14.7% in April at the beginning of the pandemic. But with that said, the retail sector is still one that I would play with caution.
Like any industry out there, the retail sector has some strong performers. But there are more reliable and more consistent sectors that I personally am looking to play – like tech or e-commerce. But like I said, even in the worst-performing areas – there are diamonds in the rough.
And here’s the stock that has currently caught my eye…
The earnings report to watch:
It’s another week of earnings reports.
And I know you don’t have time to be sifting through all the numbers and news.
So, here’s the one I’ll be focusing on, and I think you should too:
The Home Depot, Inc. (HD).
Now, earlier, we talked about watching the retail sector from afar. But HD happens to be one of those standout stocks, which could be a fast cash opportunity.
This company is a household name – and is a stock that has delivered some significant wins over my career. And this home improvement store is set to report earnings on Tuesday, August 18.
Now, I’m expecting some substantial numbers to be posted. With the lockdown, we saw many people turning to home improvement to pass the time. So home improvement retailers like Home Depot benefitted from the massive spending shift that we’ve seen over the last few months.
HD is a member of the Retail-Wholesale sector. This group includes 205 individual stock, and currently, it is outperforming the entire industry in terms of year-to-date returns. This paired with analyst’s expectations of a 9% uptick in global sales is telling me everything I need to know.
This outlook is exactly why Home Depot is my stock to watch for the upcoming week. I believe that with the impressive numbers to come, we’ll see a perfect earnings play soon. So, I’ll be sure to keep you updated.
Trading tip of the week…
My tip of the week?
Don’t get emotional and chase a trade.
I get it. You see a trade, and it’s precisely the kind of setup you’ve been looking for. It fits your risk profile; it’s on a stock you like; it even is good when it comes to time decay. But it’s moving fast, and before you blink, the trade is well over your set limit price.
It’s easy to assume that the trade is going to keep moving up – so, you wonder what the harm is in getting into the trade for more than you originally planned to pay…
But in moments like this, it’s essential to remove your emotions from the situation and realize that you had that set limit price for a reason. And by going over that set limit price, you could be risking your hard-earned cash in a big way. And that’s why I’ll always encourage you to stick to your trading plan. Your limit prices are set to fit your risk profile, and your plan is in place to protect you and your bottom dollar.
So, when you see a trade running up – take a step back and review your trading plan. Because the good news is, the market never runs out of opportunities, and there will be another money-making set up right around the corner.
Another Week, Another Round of Profits!
Last week, I shared with you the amazing success my Project 303 readers and I had so far for the month of August…
Well, that streak continued this past week, as we netted wins of 50%, 93.55%, and even 100%!
Even though there’s so much valuable information in my Profit Pregame newsletter, I have to imagine that you’d want to add to it with profit opportunities like these, right?
Join Project 303 today, and get on board for the next round of returns that’s sure to come as we get further into Q3.