LGIH

LGIH up 5.75% with a volume increase of 130% over yesterday. Looks like some big players might be accumulating.

LGI Homes (LGIH) broke out to a new high Monday, clearing a short consolidation after rebounding from its 50-day line. Meanwhile, other homebuilders have solid foundations and are near buy points.

IBD 50 stock LGI Homes rose 5.75% to 37.51 in the stock market today.

Earlier this month the company raised its full-year earnings-per-share guidance to $3.20 to $3.70, the midpoint above analyst estimates for $3.40.

…

Meanwhile, PulteGroup (PHM) and KB Home (KBH) have been consolidating near 52-week highs. PulteGroup shares erased early gains to close down 1 cnet at 21.18. PulteGroup is forming a handle in a long consolidation with a buy point of 22.50.

KB Home shares rose 0.5% to 15.70. The stock is finding support at the 50-day line as it forms a handle with a 16.86 buy point in a long consolidation.

Meanwhile, D.R. Horton (DHI) is also consolidating, but the stock last week fell below its 50-day line. D.R. Horton shares fell 0.3% to 31.83.

Toll Bros. (TOL) shares climbed 0.5% to 30.90 Monday, but are still well off highs. The stock spiked 8.8% on Aug. 23, retaking its 200-day line after the builder of luxury homes reported strong earnings. Toll Bros. also benefited that day from a Commerce Department report that new-home sales soared in July to a post-recession high.

Last week the National Association of Realtors reported that existing-home sales fell 3.2% in July to an annual rate of 5.39 million. Economists had expected a dip from June’s cycle high to a 5.57 million pace. July’s sales were down 1.6% vs. a year earlie

Things are looking better for the home builders.
Pulte is #2 in its group behind LGIH, but a littler weaker…
ChecklistRating
Composite Rating 94 Neutral
EPS Rating 98 Pass
RS Rating 70 Fail
Group RS Rating B Pass
SMR Rating B Pass
Acc/Dis Rating B Pass

KBHis #3
ChecklistRating
Composite Rating 91 Neutral
EPS Rating 98 Pass
RS Rating 76 Pass
Group RS Rating B Pass
SMR Rating C Neutral
Acc/Dis Rating B- Pass

IF interest grows in these weaker stock, it will grow faster with LIGH.

8 Likes

IBD’S TAKE: LGI Homes is the top-ranked stock in IBD’s Building-Residential/Commercial group.

1 Like

IBD’S TAKE: LGI Homes is the top-ranked stock in IBD’s Building-Residential/Commercial group.

That’s the bit I get in IBD’s commentary. After that they lose me when they go overboard with flat base formations and cup and handle breakouts which seems to be there assessment of virtually every chart in America right now.

What happened to good old head and shoulders or uptrends?

Ant