1. Conservative Recommendation
The Home Depot, Inc. (HD)
The Home Depot, a holding in Alpha Algorithm, has rallied strongly along with the rest of the housing sector in recent weeks. Housing stocks are trading at levels not seen since 2006.
Hurricane damage from the trio of recent hurricanes — Harvey, Irma and Maria — is good news for companies like Home Depot. Damage from the first two storms may hit $200 billion. Many homes, buildings and industrial complexes will need to be rebuilt in the aftermath. That means everything from drywall to plywood to hammers and nails will be in high demand in the areas that were hit hardest.
Technically, Home Depot is in a strong uptrend and scores 100% on my short-, medium- and long-term technical indicators.
2. Aggressive Recommendation
Navigator Holdings (NVGS)
This is a current recommendation in my monthly Smart Money Masters serivce. It is the top holding of current Commerce Secretary Wilbur Ross.
Navigator Holdings has been a very volatile stock, and one that has been hard to hold. The stock today is trading at the same level I recommended it at back in February. That said, the stock has been in a pretty steady uptrend since late May. As this is a “private equity” style holding, you can expect a lot of continued volatility in this position. Ross himself sees the stock rallying up to $30 before he’ll take profits. It will, however, be an unsteady ride.
From a technical standpoint, Navigator Holdings now scores 100% on all technical indicators I follow for my short-term Momentum Trader Alert service.
Nicholas A. Vardy