Bull’s Eye Report: Texas Industries (TXI)

As long as TXI stays above its 50-day MA, it looks like a great buy

   

At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry Stock Rating YTD% Gain S.T. Stop Loss
Texas Industries TXI Construction Materials 7.6 +32.40% $65.20

Why We Like The Stock:

Texas Industries (TXI) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) in the construction materials space, a sub-industry that has flashed a lot of positive technical set-ups this week. Along with TXI, Eagle Materials (EXP) and Martin Marietta Materials (MLM) look fantastic at current prices after pulling back from mid-May highs. We like the way TXI has been trending this year, as the price action has been quite favorable. The stock mostly moves one direction at a time, it is not too violent, and it peaks and troughs with identifiable turning points. We like that TXI has been operating above its 50-day moving average even after this recent sizable pullback. The stock has support right at $65.20, which also happens to be the 50-day moving average. So, as long as it can stick above this price, we think TXI is a great buy here as it looks to move higher.

We Would Be Buyers:

At the current price (~$66.70).

Company Profile:

Texas Industries, Inc. is a supplier of heavy construction materials in the southwestern United States. The company operates in three segments: cement, which produces gray portland cement and specialty cements; aggregates, which produces natural aggregates, including sand, gravel and crushed limestone, and specialty lightweight aggregates, and consumer products, which produces ready-mix concrete. The company’s cement production and distribution facilities are concentrated primarily in Texas and California.

Stock Rating: 7.6

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Texas Industries - Last Three Months

txi 1 Bulls Eye Report: Texas Industries (TXI)

Texas Industries - Last 12 Months

txi 2 Bulls Eye Report: Texas Industries (TXI)

Texas Industries - Last Five Years

txi 3 Bulls Eye Report: Texas Industries (TXI)

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At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.


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