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

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.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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