Texas Industries, Inc. (TXI): Today's Most Compelling Stock Buy

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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.



Company


Symbol


Industry

Stock
Rating

YTD
% Gain
S.T.
Stop
Loss
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.

Stock Rating:

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.

Disclosure:

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

 

 

The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of StateoftheMarkets.com and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.

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The analysis provided is based on both technical and fundamental research and is provided 'as is' without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

The information contained in our websites and StateoftheMarkets.com publications is provided by Ridge Publishing Co. Inc. (Ridge). One of the principals of Ridge, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) a Chicago-based money management firm. HCM is registered as an investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Ridge is a publisher and has not registered as an investment adviser. Neither HCM nor Ridge is registered as a broker-dealer.

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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 , Investing Ideas , Stocks , US Markets

Referenced Stocks: EXP , MLM , TXI

David Moenning


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