TOL Just a Few Cents Away From a Breakout

A break above $35 should result in a trade to $40

   
TOL Just a Few Cents Away From a Breakout

Toll Brothers (TOL) — Wednesday’s headlines trumpeted “U.S. Home Building Hits Highest Level in Nearly 6 Years.” And this major builder of luxury homes in the U.S. is geographically focused to take advantage of increased demand for upscale housing.

On Dec. 11, the company reported adjusted fiscal Q4 earnings of $0.52 per share, surpassing Zacks estimate of $0.42. Management forecasts deliveries of between 5,100 to 6,100 homes for fiscal year 2014 at an average price of $670,000 to $720,000 per home. Even with the tepid demand of the last year, TOL managed to report a profit of $0.97 per share. The company has one of the strongest balance sheets in the industry, and profits should expand as the housing market improves.

The stock has been consolidating between $30 and $35 since May, and a breakout from $35 should result in a trade to $40. TOL could also be bought by investors seeking to benefit from a rebound in the housing market that normally accompanies an economic recovery.

12 19 13 tol 300x190 TOL Just a Few Cents Away From a Breakout
Click to Enlarge

chart key 300x84 TOL Just a Few Cents Away From a Breakout

P.S. – Traders looking to Serge Berger’s free Beat the Bell service every morning will be putting themselves in capable hands.

Serge has worked for InvestorPlace for years now, and has filled in for me on the rare occasion I take a few days off. Every time I return, I see plenty of reader compliments about Serge’s work.

Serge’s technique involves swing trades in stocks and ETFs that last anywhere from two days to four weeks. He is frequently successful in capturing high-probability trades that are set up at confluence zones of support/resistance using candlesticks as his charting method.

And Serge’s advice isn’t just one-time, one-way. Win or lose, he frequently revisits ideas after the fact to see what can be learned and what new trades can be made. More importantly, Serge connects with his readers, frequently answering questions and fielding some tough ones with aplomb.

I have no doubt that traders will be well-served by Beat the Bell and Serge’s daily flow of ideas.

– Sam Collins, InvestorPlace Chief Technical Analyst


Article printed from InvestorPlace Media, http://investorplace.com/2013/12/trade-day-toll-brothers-tol/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.