Is there an opportunity for a considerable gain on a homebuilding company
DHI
that operates in 31 states, before potential recession in the US.
Fundamental indicators:
Technical Analysis (Elliott Waves):
What do you think about this scenario for
DHI
?
Please share your thoughts in the comments and like this idea if you would like to see more stocks analysed using Elliott Waves.
DHI
that operates in 31 states, before potential recession in the US. Fundamental indicators:
- Revenue and Profits - demonstrated consistent and explosive long-term earnings growth over the past 10 years
- Profit margin - showing higher efficiency every year and currently at 16.5%
- P/E - under-priced with just 4.8x ratio
- Liabilities - no problems with debt
Technical Analysis (Elliott Waves):
- Although it is a complex scenario but it is likely that there is an Ending Diagonal forming in the final fifth wave since the global correction completed in March 2020
- Wave 1 with a zigzag culminated in May 2021 and since then second wave has been forming with an Extended Flat pattern where wave C is currently getting completed
- Wave 3 is also expected to be formed by a zigzag targeting price range of $111 to $130 representing 0.5 and 0.786 Fibonacci retracement levels respectively
What do you think about this scenario for
DHI
? Please share your thoughts in the comments and like this idea if you would like to see more stocks analysed using Elliott Waves.
In search of the optimal signals