I have 22 consecutive profitable trades of 15% or better. How is this possible? Every day there are hundreds of stocks setting new highs, no matter what happens in the overall market. Many of these stocks are still at very reasonable valuations. Afraid of buying stocks at their highs? Think of it this way: a new high is really a future floor for companies with solid financial underpinnings. Quantitative momentum modeling makes it easy to identify stocks that can continue this upward momentum trend. Why does this happen? It's really very simple..ask me about what investors and cows have in common. I am $$$ MR. MARKET $$$. I AM HUGE!!! Bring me your finest meats and cheeses. You can join in on the fun. Register for free and you'll be able to post messages on this forum and also receive emails when $$$ MR. MARKET $$$ makes his own trades. ($$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.)
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Here’s my take:
LEN Excellent financials. Good growth story. Beat estimates 8 quarters in a row, On track for a good 2021. Chart looks strong with uptrend that started in November of last year. May be in the middle of a slight pullback, however, so there may be some draw down.
Grade: A-
LGIH
Excellent financials. Great growth in revenue and earnings. Beat estimates in seven straight quarters. Chart is strong with solid uptrend. Like LEN, it might be in the midst of a slight pullback.
Grade: A-
MCB
Excellent financials. Good growth in both revenue and earnings. Beat estimates in 5 of last 6 quarter. The chart is a little iffy. It is basing at the high, which is very bullish, but it has been basing there since early February, which is not good. Nevertheless, it does look poised to move higher, as MACD is swinging positive.
Grade: A-
MDC
Excellent financials. Good growth in revenue, and excellent growth in earnings. Beat Estimates in 6 of last 8 quarters. Chart is choppy and volatile, but stock is in uptrend. Looks like an ascending triangle has formed on daily with breakout possible above 62. Could be in the midst of a modest pullback.
Grade: A-
MHO
Excellent financials. Good growth in revenue, excellent growth in earnings. Beat estimates in 8 of last 9 quarters. Chart is in strong uptrend. In the midst of a modest pullback.
Grade: A-
So basically, it’s take your pick. These all look about equally strong. If I had to pick just one, it would probably be LEN.
I see a theme in these. The homebuilding business is obviously booming, since 4/5 of these are in that sector. But you need a bank to fund all these homebuilders, and so there you are, with MCB... My favorite of the homebuilders here is MHO, because it's got a P/E of 7, which is still cheap, especially for a company growing its earnings by 10%+ every year!
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