ChartWatch: Trulia Hit A Home Run

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Trulia.com ( TRLA ) hit the ball out of the park during yesterday's earnings, and the stock is up by more than 26% this afternoon.

ChartWatch highlighted the company last week. In fact, I labeled it one of the best housing stocks, and expected the shares to move above $30 .

As previously mentioned, the big area to watch was the two support zones (in blue). TRLA found support exactly where expected. The $24 level should be incredible long-term support given today's ascent, although I doubt the shares will make their way back down any time soon.

http://stockcharts.com/c-sc/sc?s=TRLA&p=D&b=5&g=0&i=p22275535590&a=291110271&r=1360779184492
This chart shows the price of Trulia shares along with important support levels to monitor.


Trulia remains a cheap stock, despite a 100% rally from November. I think it can hit $36 before the year is through.

Though the company does not generate positive income, it's a sales-growth machine - as I mentioned to readers . Revenue ripped 75% higher last year. Moreover, the company generates positive operating cash flow and had positive EBITDA.

The company's largest revenue source comes from subscriptions. Real estate agents pay a fee to gain exposure to Trulia's 23 million users. So revenue per subscriber is the most important metric to track because it confirms the value of Trulia's service - and it was up big again in the most recent quarter.

Trulia is truthfully one of my favorite stocks. I acted on that opinion, too. I advised readers of my Top Stock Insights service to purchase the stock Tuesday morning - ahead of today's big move.

This is actually the second earnings trade conducted in our portfolio this season. The first was Qualcomm ( QCOM ) , which later ripped 5.5% higher after reporting positive results and increased guidance. Top Stock Insights has 21 positions in the portfolio and 17 show gains - six of which are up by more than 25%.

Equities mentioned in this article: TRLA, QCOM

Positions held in companies mentioned above:

Don't Miss: ChartWatch: A Housing Stock You Haven't Heard Of



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: QCOM , TRLA

Wyatt Investment Research

Wyatt Investment Research

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