MDC - Investing In Century Communities After It Hit An All-Time High: Why It's Time To Buy
2024-02-12 12:42:01 ET
Summary
- Century Communities experienced a dip in stock price after reporting earnings, creating a potential buying opportunity.
- The company has attractive valuation metrics and strong earnings potential, with room for upside from upgrades.
- Century Communities expects to see revenue growth and increased demand and is well-positioned to compete in the market and potentially engage in M&A activity.
Although I recently declared an end to the seasonal trade on builders , buying opportunities in the stocks of home builders should still appear from time to time as the year unfolds. Century Communities, Inc. ( CCS ) offered up one of those opportunities last week. The home builder gained 7.6% on February 1, after reporting earnings. Sellers proceeded to wipe out those gains over the following four trading days. The selling ended right above a technical support level at the 50-day moving average (the red line in the chart below), creating what looks like the bottom of a developing trading range. CCS's earnings seem to support a case for this bottom more or less holding in the short term. Eventually, the stock should rebound to the top of the trading range and perhaps even breakout by the next seasonal trade on home builders....
Investing In Century Communities After It Hit An All-Time High: Why It's Time To Buy