Stocks are pulling back as the market digests the possibility of more rate hikes this year.
But just because the broader market is pulling back does not mean most stocks are.
In fact, there are some stocks that seem to just defy the market – to keep on rising even as the market is falling.
You probably won’t read about these stocks in the mainstream media – most of them are too small to make it to the headlines.
But you can read about them here…
Because today’s daily stock pick has not only gone up during the recent pullback – but it’s also demonstrated strong momentum overall – up over 40% this year and over 80% over the past one year.
That momentum has also been supported by earnings growth, with its earnings per share having more than quadrupled over the past four years.
Like yesterday’s pick, this stock has nothing to do with tech or AI. Yet, its momentum could outpace them all.
Meritage Homes Corporation (MTH)
Homebuilding company Meritage Homes focuses on building homes for first-time and “move up” buyers across the United States.
And as mentioned earlier, its stock has posted an impressive performance – up by more than 40% in 2023 and over 80% in the past year. In fact, its stock is now sitting at an all-time high. And considering it’s been public since 1988, this is a testament to just how far this company has come over the years.
To be clear, homebuilding stocks in general have been outperforming. Tight supply of existing homes for sale and declining lumber prices combined with rising home prices have been a boon for homebuilders – who are now more confident than ever.
Yet, even among this group, Meritage Homes has been a standout in terms of its stock performance. The likely cause is its track record of consistently beating analysts’ earnings expectations. And this seems only likely to continue.
If you’re looking for a non-tech stock with both steady and sizeable growth potential, this might be one to consider.
To your wealth,
Felix @ Ace of Investing