Opinions
The Panic-Proof Portfolio (Stockchase Research)
Beazer Homes USA, Inc.
BZH-N
TOP PICK
Aug 18, 2020
Stockchase Research Editor: Michael O'Reilly Builder confidence is at 35 year all-time highs. The work-at-home trend and low interest rates are encouraging young buyers into the market. BZH has enjoyed 10% increases in revenue over the year, along with an 8% increase in closings according to recent earnings. Their EBITDA jumped 40% over the year as well. The company is trading at 9 times 2020 earnings, making it a good valuation. Long term debt is manageable with no significant maturities until 2025. The company also holds $150 million of unrestricted cash. Latest analyst targets look for a return to $16 levels -- the pre-pandemic price -- offering over 27% upside. We would trade this with a stop-loss of $11. Yield 0%
$12.560
Stock price when the opinion was issued
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PAST TOP PICK
(A Top Pick Aug 18/20, Up 27.3%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with BZH has achieved its $16 objective. To be disciplined, we are recommending covering 50% of the position. We also recommend trailing up the stop to $13.50, which would all but secure a minimum return of 17% for the entire position.
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PAST TOP PICK
(A Top Pick Aug 18/20, Up 35.3%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with BZH has triggered its stop at $17. We recommend covering the balance of the position. This will result in a net investment return of 31%, including the 50% previously recommended to cover.
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