This US homebuilder saw a 14% increase in new orders in Q1. Renewed consumer confidence will fuel further demand growth. It trades at 7x earnings, 1.6x book and supports a ROE of 26%. We recommend setting a stop-loss $14, looking to achieve $27 -- upside potential of 24%. Yield 0%
(A Top Pick May 27/25, Up 25%)Stockchase Research Editor: Michael O'Reilly
Our PAST TOP PICK with DFH has achieved its target at $27. To remain disciplined, we recommend covering half the position at this time and maintaining the stop at $12.50.
Our PAST TOP PICK with DFH is progressing well. To remain disciplined, we recommend trailing up the stop (from $12.50) to $21.00 at this time.