NYSE:BLDR is building a small C&H on the hourly chart, following a good run with higher lows, followed on a better than expected earnings. Looking to enter if market allows me.
BLDR is part of the construction industry and has had consistent gains over YTD in the range
of 95 % with favorable beats on earnings estimates and increases in revenue. Volume has been
rising in the past month. In the past when BLDR pulled back to the blue SMA100 line it then
reversed quite well and resumed its move higher. At present, BLDR is on a pullback...
Fundamentals
Builders FirstSource is in a robust financial situation and very cheaply valued (P/E = 4.6, P/S = 0.6)
Since the start of 2011, its revenue has tripled and earnings grew by almost 900%! Even last year when the market was puking, its earning grew by 60%
Their profitability is also good with ROE = 55.4% (Industry = 17.9%) and net profit...
Management has been aggressively buying back shares
Strong return over the last three months
Cash flows can sufficiently cover interest payments
Prominent player in the Building Products industry
The PEAD projected a Bullish outlook for $BLDR after a Positive Under reaction following its earnings release placing the stock in drift A with an expected accuracy of 81.82%.
BLDR has pulled back to the 163/164 mark. The last two time it did this it bounced back and hit the 72-75 range and relatively quick.
The MACD has it in a downtrend for now but I think if you can get this stock @ the 60-63 range you will be in great shape for a decent return in a few months. RSI has it on the oversold side slightly, the PE ratio is also at a 7.61...
Buy (Entry Price) above the black line and exit (Stop Loss) below the red line. Can take profit at the suggested Target Price.
Entry Price: $76.57
Target Price: $77.97
Stop Loss: $74.16
Dead money since November 2021. Now ready to move as cup and handle formation develops?
Pivot = $79.14. This is the level which it must clear and hold.
Stop = $72.63
Target: $94.24
Also above daily and quarterly pivot.
* Excellent earnings quarter over quarter
* Strong up trend
* Broke out of a 5 month consolidation
* Currently has 45.84% more volume than average
* Created a cup and handle pattern
* Probable 34.84% ROI
