Toll Brothers Stock May Be the Next Big Winner for Bulls

TOL is also holding near annual-high territory

Oct 29, 2019 at 12:45 PM
facebook twitter linkedin


Homebuilding stocks have been one of the strongest groups in 2019, and Toll Brothers Inc (NYSE:TOL) has been no exception. The shares are up more than 24% in 2019, holding near annual-high territory, yet the sentiment picture remains extremely bearish -- setting up an ideal situation for contrarian bulls.

191025tol

The easiest place to look for the Street's disrespect for TOL stock is in the analyst community. Right now, there are 13 brokerage firms in coverage, and just one of them recommends buying the shares. This would suggest the security's long overdue for a round of upgrades.

Covering from short sellers could serve as an upside catalyst, too. Short interest rose another 19.1% in the last two reporting periods, and now accounts for 6.2% of the equity's float. This means there's plenty of buying power on the sidelines that could come in and boost TOL.

Finally, our recommended call has a leverage ratio of 6.9, and will double in value on a 13.4% increase in TOL stock.

Subscribers to Schaeffer's Weekend Trader options recommendation service received this TOL commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners