Apple sells off despite Street-beating earnings, iPhone sales >>> READ MORE

Time for Traders to Exit This Winning Stock

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


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.

VMC Chart
Click to Enlarge

Trade of the Day Chart Key

Article printed from InvestorPlace Media,

©2016 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.