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.
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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.