Top Stock to Buy #5 — Toll Brothers (TOL)
Toll Brothers (NYSE:TOL), a major builder of luxury homes in the United States is geographically focused to take advantage of an increase in demand for houses priced in the range of $550,000 to $575,000.
Even with the tepid demand of the last year, TOL managed to report a profit of 12 cents per share. The company has one of the strongest balance sheets in the industry and should benefit substantially when the housing market improves.
Note the variation of a “W” bottom — a very strong technical formation. A break above resistance at $21-$22 could quickly take TOL to the high $20s.