Time for Traders to Exit This Winning Stock

VMC reached price target; pullback could offer another chance to buy

   
Time for Traders to Exit This Winning Stock

Vulcan Materials (NYSE:VMC) — This large-cap maker of construction materials, including cement and asphalt mix, is the nation’s largest producer of aggregates. Although Vulcan will report a loss for 2012, the company anticipates a turnaround in 2013 due to a demand for infrastructure construction and an upturn in the housing market. Recently released consensus earnings estimates are for a profit of $0.21 in 2013 versus a loss of $0.42 in 2012.

The stock was first recommended in the Trade of the Day on Dec. 10, at $52, saying, “Technically, the shares have rallied to two-year highs on increased volume from a wide cup-and-handle formation. This bullish pattern has a very high level of predictability, usually signaling that a major bull market is about to occur. Buy VMC for a trade to $56.”

Since our short-term objective has been reached, traders should exit the stock with a nice profit. Take a new short-term position on a pullback under $54 for a trade to $60. Long-term investors may want to continue to hold this stock as a cornerstone position for participation in an upturn in the building and heavy construction industries.

01 24 13 vmc 300x206 Time for Traders to Exit This Winning Stock
Click to Enlarge

chart key 300x84 Time for Traders to Exit This Winning Stock


Article printed from InvestorPlace Media, http://investorplace.com/2013/01/trade-of-the-day-vulcan-materials-nyse-vmc/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.