|SoTM Bull's Eye Report - Today's Most Compelling Buy |
Tuesday, June 11, 2013
At StateoftheMarkets.com, we strive to "own the best and ignore the rest" in our equity portfolios. Toward this end, each day we search our database for a "top stock" (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical "set up" and a good entry point.
In short, when our equity team is looking to add a stock to one of our portfolios, the "bull's eye" stock shown below is generally their first choice.
|Texas Industries Inc ||TXI || Construction Materials || 7.6 || +32.40% ||$65.20 |
Why We Like The Stock:
Texas Industries Inc (TXI) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) in the Construction Materials space, a sub-industry that has flashed a lot of positive technical set-ups this week. Along with TXI, Eagle Materials (EXP) and Martin Marietta Materials Inc (MLM) look fantastic at current prices after pulling back from mid-May highs. We like the way TXI has been trending this year, as the price action has been quite favorable. The stock mostly moves one direction at a time, it is not too violent, and it peaks and troughs with identifiable turning points. We like that TXI has been operating above its 50-day moving average even after this recent sizable pullback. The stock has support right at $65.20, which also happens to be the 50-dma. So, as long as it can stick above this price, we think TXI is a great buy here as it looks to move higher.
|We Would Be Buyers: |
At the current price (~$66.70).
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|Company Profile: |
Texas Industries, Inc. is a supplier of heavy construction materials in the southwestern United States. The Company operates in three segments: cement, which produces gray portland cement and specialty cements; aggregates, which produces natural aggregates, including sand, gravel and crushed limestone, and specialty lightweight aggregates, and consumer products, which produces ready-mix concrete. The Company's cement production and distribution facilities are concentrated primarily in Texas and California. As of May 31, 2012, the Company had 82 manufacturing facilities in six states. On July 29, 2011, the Company acquired three ready mix concrete plants and one sand and gravel plant, located in the Austin metropolitan market. On April 20, 2012, the Company sold its aggregate rail distribution terminal including 154 acres of land and associated assets located in Stafford, Texas, south of Houston. On April 16, 2012, the Company sold its Texas based packaged products operations.
The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 - 10 with 10 being the highest.
At the time of publication the editor and affiliated companies own the following positions: None
Note: Positions may be bought or sold while this publication is in circulation without notice.
Texas Industries Inc - Last 3 Months
Texas Industries Inc - Last 12 Months
Texas Industries Inc - Last 5 Years
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