KB Home : Come back to a significant threshold
By Sandra Pinturault
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$18 | $0 | $16.9 | -100% |
From a fundamental viewpoint, the security is still attractive. By the year 2015, it seems that KB Home profitability could increase significantly. Indeed, net margin should be at 5.51% in 2015 against 1.85% for the current year. Eventually, sales are expected to increase by 38% by the end of the year.
The area of the USD 17.7 support should enable the stock to have a new bullish trend. The 50-week moving average in this area confirms its relevance. Technically, above these levels, 4-traders analysts are optimistic and count on a return toward the 20-week moving average.
Ideally, investors will take a long position nearby the USD 17.7 support currently tested, in order to benefit from a technical rebound. The USD 19.9 is the first goal. This strategy should be covered by a stop loss placed under the USD 17.7 support because a breakdown of this level would invalidate it.