Top Stock to Buy #5 – PulteGroup (PHM)
PulteGroup (NYSE:PHM) is a U.S. homebuilder with a financial services division that consists principally of mortgage banking and title operations. It appears that first-time buyers are becoming more active, and U.S. households are increasing at a greater rate than homebuilding, so we may have seen a bottom in the building industry.
Pulte is cash rich, with over $1.1 billion in cash that can be used to build or acquire communities. The company has increased its earnings (though still at a loss) for the past four years and is likely to turn profitable this year.
Technically a golden cross followed by a break through the long-term resistance line at $8 are powerful signals. And the April 27 break to $10 on twice the normal volume is a signal that PHM has the potential to run to the high teens.