Chart of the Day: Under-the-Radar Stock Is Back on Track
After recent inflation news triggered an avalanche of buying, this portfolio name is flashing some buy signals.
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Builders FirstSource BLDR is an East Coast company that is not thought much of when the conversation is about home building, housewares, repair and hardware. After all, everyone knows Home Depot HD and Lowes LOW, the two dominant players. But BLDR is not small, it is the largest supplier of building products, components and services. The stock flies under the radar and had a tough correction following poor earnings reaction in May, but it appears to be back on track.
As we see in the chart, BLDR seems to have found good support in the low 120s. Recent news about lower inflation triggered avalanche buying in names like BLDR and the stock has moved up significantly, but now faces some challenges. The 200-day moving average is just above current levels at a time when the stock is now very overbought. That makes BLDR vulnerable to some selling, though we think a pullback would be shallow and a chance to buy more shares.
MACD remains on a buy signal, money flow at the bottom is impressive and running higher while momentum made a sharp move up. Notice that the candles are now cautiously bullish, the parabolic SAR (stop and reverse) in the top pane has flipped to bullish.
We rate BLDR a One in TheStreet Pro portfolio. Buy at anytime.
More Pro Portfolio:
- Locking in Big Gains on This High-Flying Stock
- Weekly Roundup: Rotating Back to the Start
- Reading the 'News Signals' From Our Investing Notebook
At the time of publication, TheStreet Pro Portfolio was long BLDR.
