Earnings Watch: Good Setups in HD, PANW, and BJ | A View From the Flooring

Earnings season continues with names like House Depot, Palo Alto Networks, and BJ’s Wholesale flashing alerts that buyers should not ignore. Whether or not you are following residence enchancment traits, cybersecurity progress, or retail resilience, these shares provide perception into the place the inventory market may very well be headed subsequent.

Let’s break down the charts, decode the earnings, and discover the setups that might form your subsequent transfer.

DIY Growth Fizzling: What House Depot’s Earnings May Inform Us

House Depot, Inc. (HD) stories earnings on Tuesday, and its outcomes will give a peek at how the DIY residence retail investor is altering their spending habits. HD’s inventory value has struggled and is down about 2.5% year-to-date, however effectively off its lows. Like most shares reporting earnings this quarter, buyers will pay attention for any revisions to HD’s steerage, particularly contemplating ongoing financial challenges corresponding to excessive rates of interest and their affect on client spending.

Let us take a look at the every day chart of HD.

FIGURE 1. DAILY CHART OF HOME DEPOT, INC. STOCK PRICE. The $377 space and 200-day transferring common act as the center highway for a possible setup.Chart supply: StockCharts.com. For instructional functions.

The chart of HD inventory displayed a head-and-shoulders high final quarter, which we warned about. Sadly, that sample broke to the draw back and hit its goal some $50 decrease. Since bottoming, shares have retreated to the place they had been earlier than their final report.

The set-up is a coin flip, with the $377 space and 200-day easy transferring common (SMA) performing as the center highway. Inventory costs are recognized to hole and development for roughly two weeks within the hole’s course earlier than reversing course.

If HD’s inventory value dips, there are clear assist and potential entry factors. Search for the rising 50-day SMA to carry at across the $360 degree. A dip and maintain right here can be good for the longer-term turnaround story and the bullish case. If there is a break, await a deeper drop to enter HD. A niche above the 200-day SMA ought to result in near-term clean crusing and allow a dealer to make use of the typical as an incredible cease loss information.

Palo Alto Networks (PANW): Can It Hold Climbing?

It is one of many largest names in cybersecurity, and it is on the verge of getting again to its all-time highs.

Essentially, Palo Alto Networks’ annual recurring income (ARR) continues to be the numerous progress driver. In Q1, ARR grew 40% year-over-year to $4.5 billion. For Q2 2025, the corporate projected ARR between $4.70 billion and $4.75 billion. Buyers might be eager to see if the corporate meets or exceeds this steerage.

Technically, we wished to have a look at this chart on an extended time-frame. The five-year weekly chart of PANW beneath reveals the development is stalling beneath a double high on the $205 degree. There are some good indicators that it could possibly get again on observe and push to new highs.

FIGURE 2. WEEKLY CHART OF PALO ALTO NETWORKS STOCK PRICE. Monitor the rising 50-week SMA. Will it maintain that degree after earnings? The MACD is displaying a bullish crossover, which alerts a positive threat/reward setup.Chart supply: StockCharts.com. For instructional functions.

The important thing degree to look at for the bulls is the rising 50-week (blue line) SMA. Shares had constantly trended above this degree since initially surpassing it in early 2023. Value motion briefly broke beneath that common, however recaptured it two weeks in the past. Now it should maintain that degree, so watch $178.50 for assist on any weak point.

The technical indicator that caught my eye was the transferring common convergence/divergence (MACD), which simply skilled a bullish crossover. This has a historical past of resulting in nice threat/reward setups in a inventory. The chart highlights the present crossover and the final two notable ones in inexperienced to display the indicator’s previous efficiency.

Any upside motion ought to take PANW’s inventory value again to the $205 degree and a re-test of all-time highs.

BJ’s Wholesale (BJ): Quietly Outperforming

BJ’s has quietly loved a powerful 2025, regardless of tariff speak and adverse client sentiment. Shares of BJ are up 29% year-to-date and over 44% during the last 52 weeks. Whereas its $14 billion market cap pales compared to the $450 billion dimension of its largest wholesale competitor in Costco (COST), BJ continues to exceed expectations and thrive.

BJ’s inventory value has rallied after 4 of the final 5 earnings stories, with a median acquire of 8%, together with a 12% rally final quarter. Coming into the outcomes, the inventory value is beginning to rally again in the direction of all-time highs. Possibly this would be the catalyst to interrupt out even increased.

Technically, there’s a lot overhead resistance on the $120 degree (see every day chart of BJ beneath). A break above there ought to result in one other $10–$15 on the upside. 

FIGURE 3. DAILY CHART OF BJ STOCK. Word the overhead resistance at across the $120 degree. On the draw back, there’s assist at $108 and the rising 100-day SMA.Chart supply: StockCharts.com. For instructional functions solely.

Weak spot has given buyers alternatives as effectively. There’s clear assist on the $108 degree and the rising 100-day SMA (in inexperienced). The long-term development has been robust and, barring a serious change within the fiscal course of BJ’s, the traits ought to proceed to be your good friend and provides strong threat/reward entry factors. 

Last Ideas

Charts aren’t simply squiggly traces. They’re instruments that can assist you make smarter choices along with your hard-earned cash. 

Whether or not you are eyeing a possible rebound in House Depot, the power of cybersecurity, or a quiet winner like BJ’s, bear in mind: technical patterns can provide you an edge, however so can endurance and perspective.