With its next quarterly earnings report due around Aug. 3, IBD Sector Leaders member LGI Homes (LGIH) is currently approximately 7% shy of a 188.10 buy point. The entry is based on a second-stage consolidation.
Understand that buying just before a stock reports is risky, since an EPS or sales miss could send it sharply lower. You can reduce your exposure by waiting to see how the company reports and how the market reacts. You can also use an options strategy to limit your potential downside.
In terms of fundamentals, LGI Homes has posted rising EPS growth over the last three quarters. Sales growth has also moved higher over the same time frame.
Analysts expect earnings growth of 77% for the quarter, and 32% growth for the full year. Annual growth estimates were recently revised lower.
LGI Homes has a 97 Composite Rating and holds the No. 1 rank among its peers in the Building-Residential/Commercial industry group. Century Communities (CCS) and NVR (NVR) are also among the group’s highest-rated stocks.
Note: Dates for earnings reports are subject to change. Check the company’s website for any updates.
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