Why the Harvey Norman Holdings Ltd share price has been moving higher

Credit: Peter Heath

Harvey Norman Holdings Ltd’s (ASX: HVN) share price is trending above the 50 and 200 day moving average after lagging for most of the past 12 months.

The integrated retail powerhouse has a long way to go before its share price is back where it was sitting pretty at $5.17 in February 2017, but the trend is definitely on the up.

Harvey Norman found itself back in the top 5 ASX 200 price risers earlier this week, sitting down 1% to cap off January at $4.47.

Harvey Norman trading stats have been unremarkable over the last 12 months, but sector comparisons show things are travelling along steadily in the discretionary spending arena, with JB Hi-Fi Limited (ASX: JBH) sitting happily at $28.61 per share with favourable forecasts for the next 6 months.

Harvey Norman’s half-year results are scheduled to be released on February 27 which could give prices another boost.

On the whole Harvey Norman is still a strong buy on fundamentals, with a good PE ratio of 11.2 and a strong team of experienced players who are no doubt bracing for an unavoidable battle against online retail gorilla Inc.

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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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