Get Bullish on Toro Company

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Toro Company (NYSE:TTC) — This is a household name when it comes to small engine equipment, but it also designs, manufactures and markets turf maintenance equipment, irrigation systems, landscaping, lighting and snow removal products. It is a beneficiary of a growing need for its products from emerging nations including India and China.

Earnings are expected to reach $2.43 in fiscal year (FY) 2013 (ended Oct. 31), and the average estimate for FY 2014 is $2.82. Toro has proven to be a steady performer with predictable growth. Analysts believe TTC could accelerate in line with a better housing market.

The stock was last recommended by the Trade of the Day on July 10, 2012, at $38.08.

Technically, TTC is in a powerful, long-term bull channel with support at its 50-day moving average at $43.80 and its bullish support line just under $40. The MACD is bullish, and the long-term price objective is $58.

Traders should watch TTC, buying into weakness and selling into strength as the stock bounces between its support and resistance lines.

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