The Home Depot Inc. (HD), the world's biggest home-improvement retailer, saw its shares drop off on its most recent quarterly earnings report in which same-store sales growth came in weaker than expected and first-quarter revenues failed to meet the consensus estimate. In light of recent weakness, one technical analyst on the Street recommends that value-oriented investors buy shares of the retailer on the dip, as reported by CNBC. (See also: Home Depot Has Repaired Its Charts Ahead of Earnings.)

On Tuesday, the Atlanta-based retailer told investors in a conference call that while a prolonged winter weather season dragged on quarterly results, comp sales for May were "double digit positive" and transactions that were valued at over $900 rose 10% in Q1. Chief Executive Officer Craig Menear indicated that strong momentum in May should continue against the backdrop of a favorable housing and macroeconomic environment

Trading down about 0.2% on Wednesday morning at $187.72, HD reflects a 0.8% decline year-to-date (YTD) and an 18.3% gain over 12 months, compared to the S&P 500's 1.6% increase and 13.1% return over the same respective periods. The stock, down 9.6% from highs reached in January, trailed the Dow Jones Industrial Average (DJIA) through the start of the year, yet has made a comeback as the second-best Dow performer over the past one-month period, as noted by CNBC. 

'Weakness Occurring Above Support'

Ari Wald, head of technical analysis at Oppenheimer, expects HD to break out on a handful of technical indicators. “This weakness is occurring above support and within HD's turnaround, and we therefore see an opportunity to buy shares," said Wald in an email on Tuesday, as reported by CNBC. He noted that Home Depot's 200-day moving average is still rising, an indicator of a stock in an uptrend. Shares are also "moving above $180," said the analyst, "the first higher high for Home Depot since the correction started." HD broke out above $180 at the end of last month, and has been able to hold that level in intraday trading since. 

"Add it all up, we have a pullback in an uptrend with an inflection. All signs pointing to a resumption of that uptrend for Home Depot," said the Oppenheimer analyst. (See also: Why Home Depot May Plunge 20% Off Its Highs.)