Market Cap: 6.70B
Average True Range: .69
Forward P/E: 13.30
Sector: Industrial Equipment Wholesale
Sales Growth Q/Q: 6.1%
EPS Growth This Year: 98.50%
Price to Sales: .74
EPS Next Year: 30.26%
HDS Daily
HDS has seen two high volume breakouts out of sideways trading ranges recently. One in late March and one recently coming last Tuesday after beating earnings estimates. Growth is strong here as the company has been growing EPS over the last year and it is expected to continue next year as well.
HDS Weekly
The weekly view shows just how resilient the stock has been since breaking out in March. While the market has been quite volatile, HDS has worked its way steadily higher in an orderly manner. Stops will be placed just below the recent range support at 32.22. This is also the weekly closing low from 5/15. A break of that low would signal more consolidation is needed an we would likely want to step aside.
Relative Strength vs SP500
Here is where the stock really impresses me. Relative Strength vs the SP500 has recently broken out of an 18-month base and has been outperforming since. The stock is now making new relative highs and appears poised to lead. The MACD also shows strong trending behavior and appears ready to make new highs.
Relative Strength is strong, trend health continues to point higher and valuations are very reasonable. This makes HDS a solid candidate to outperform over the next 12 months and possibly beyond. As always though we manage risk first. Should the stock turn against us we will take measures to protect our capital.
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