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Dow stock Home Depot just hit an all-time high as it trades in a 'sweet spot'

Trading Nation: Home Depot nears 2018 high

Home Depot is on fire.

The stock hit an all-time high on Monday after leading the Dow Jones industrial average last week as the index's top-performing name. Now, some money managers see shares of the home improvement chain heading higher against a strong economic backdrop.

"They're in this macroeconomic sweet spot, and it's really going to continue for a while. The consumer is strong," Mark Tepper, president and CEO of Strategic Wealth Partners, said Friday on CNBC's "Trading Nation."

Tepper cited rising household net wealth and steadily rising hourly average wages, two facets of the U.S. consumer that make him confident in Home Depot at current levels. Consumers are more likely to spend on home improvement projects if they're earning more, the thinking goes.

The stock looks attractive on a technical level, said Craig Johnson, chief market technician at Piper Jaffray. He's also bullish on the name due to its relationship with the trend in U.S. private construction spending. The stock and that measure have been steadily rising together.

"Seeing no change in that trend, we'd not expect to see any sort of change in the Home Depot trend, either," Johnson said Friday on "Trading Nation," adding he'd buy the name on a technical breakout.

Home Depot shares surged 2 percent on Monday, near $210.05 per share.