Showing posts with label V. Show all posts
Showing posts with label V. Show all posts

Tuesday, July 21, 2020

Visa, Home Depot, and Nike are a Buy Based on Simple Moving Average

    Home Depot (HD), Visa (V), and Nike (NKE) are buys at these levels when you consider only the 50-Day and 200-Day simple moving averages of all the stocks in the Dow Jones Industrial Average. Nike's 50-day simple moving average (SMA) is greater than its 200-day SMA. That's considered a bullish signal for the stock. Its 10-day SMA is greater than both its 50-day and 200-day. Both Visa and Home Depot exhibit the Golden Cross pattern where the 50-day SMA exceeds the 200-day SMA. But, based on fundamentals are they too expensive? 

Exhibit: Simple Moving Average May be Indicating that Nike is Buy
    

(Source: Securfii)

Exhibit: Simple Moving Average May be Indicating that Home Depot and Visa are a Buy


(Source: Securfii)

Nike is currently trading at 40x forward earnings. Home Depot is trading at 25x forward earnings and Visa is trading at 39x forward earnings. From a fundamental perspective all three companies are trading at a premium. But, on the other hand all three companies are one-of-a-kind in the world. Nike has an incomparable brand that is cherished across the globe. Visa has global network effects that cannot be easily replicated.  Home Depot's biggest strength may be its operational excellence.
Disclosure: I do not currently own HD, V, and NKE.










 

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