Meritage Homes Corporation : The USD 42 support area being tested
By Florian Girard
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$42.19 | $0 | $40.55 | -100% |
The company enjoys an excellent Surperformance rating which underlines the revenue growth, the earnings quality and the attractive valuation. The present consensus average target price is displaying a 10% upward potential. Furthermore, the P/E ratio for 2015 estimates is below the industry average.
The stock has been in an accumulation stage for several months within the USD 49.7/42 range. Near the lower limit, that acts as a support, the share finds the help of the rising 100-week MA currently at USD 42. Moreover, the RSI indicator shows an oversold situation.
Therefore, it seems opportune to take a long position on Meritage Homes Corp at current prices. A first target price could be the USD 45.7 resistance. Investors should not insist below the USD 42 and a stop-loss order should be placed under this threshold.