The IBD SmartSelect Composite Rating for Taylor Morrison Home increased from 94 to 96 Friday. The homebuilder is trying hard to stay within the buying range from a cup without handle pattern despite the tough market.
The new rating shows the stock is outpacing 96% of all stocks when it comes to the most important stock-picking criteria.
Taylor Morrison Home broke out earlier, but is now trading about 1% below the prior 35.61 entry from a cup without handle. In the scenario where a stock breaks out then falls 7% or more below the entry price, it's considered a failed breakout. If that happens, it's best to wait for a new pattern to form.
Interest rates can play a major role in home purchases, new or resale. Yet this industry has been holding up well despite the overhang of more rate increases.
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Earnings Review
The stock has a 98 EPS Rating, which means its recent quarterly and longer-term annual earnings growth tops 98% of all stocks.
Its Accumulation/Distribution Rating of B- shows moderate buying by institutional investors over the last 13 weeks.
In Q4, the company reported 34% earnings growth. Revenue growth fell to -1%, down from 9% in the prior quarter.
Taylor Morrison Home earns the No. 9 rank among its peers in the Building-Residential/Commercial industry group. M/I Homes, Meritage Homes and Lennar Cl A are among the top 5 highly-rated stocks within the group.
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