This One Company is Set to See a Big Summer Revenue Boom
The surging housing market offers huge profit potential in this related stock.
2021 has been a massive year for the housing market already.
The massive demand for housing has already created some huge moves up for top homebuilding stocks.
D.R. Horton, Inc. (DHI) has seen gains of more than 52% since the start of the year.
LGI Homes, Inc. (LGIH) has boomed by as much as 62% year to date.
And that’s just two examples of some of the huge profits that have been created by the incredible demand in the market right now.
And one piece of new data suggests that demand won’t be slowing down any time soon.
Today, I’ve got a recommendation for you on a backdoor play to take advantage of the flood of home purchases happening right now.
Where’s the money?
If you’ve been involved in the homebuying process just about anywhere in the U.S. this year, you’ve likely experienced the effects that the unheard-of demand has caused.
Many buyers have resorted to making offers well above market value without ever having seen the house in-person due to the incredibly competitive market.
That’s exactly why home prices in the U.S. have accelerated at the fastest pace in 15 years. The shortage of available homes had led to a big year for homebuilders that are scrambling to keep up with demand.
But despite rising prices, homebuyers have not been deterred. In March, homes for sale in the U.S. only remained on the market for 18 days on average.
As long as the government continues to print money and the Fed keeps interest rates low, this is a trend that should continue for most of the year.
And while you may be thinking to buy up shares of homebuilder or realty stocks to take advantage of the hottest real estate market in years, I’ve got another play that I believe will be even more lucrative…
How do I get some?
If you’ve ever moved into a newly purchased home – even if it’s been beautifully renovated – there’s always at least a project or two that you want to undertake.
And with the surge in homebuying, we’re seeing sales from home improvement companies explode.
So my favorite play to take advantage of the hot real estate market is The Home Depot Inc. (HD) – which operates more than 2,200 locations in North America. As such, it is well positioned to take advantage of the glut of home improvement projects that the housing boom and the coming summer months are creating.
We’ve already seen revenue spiking in recent months, with HD’s latest earnings report in February revealing a 25% increase.
And even though the stock is trading above its 50 and 200 day moving averages, I believe the current market conditions give it a lot more room to run.
An even bigger wave of money is up for grabs…
The trading revolution brought on by the rise of apps like Robinhood has created wave after wave of speculative surges.
As millions of inexperienced people continue to throw money into the markets with reckless abandon, the profit potential is endless for those of us with a defined trading strategy.
And right now, no strategy is better suited to take advantage of this unprecedented volume than that of America’s top pattern trader, Tom Gentile.
Learn how he’s been making money by playing this new phenomenon, right here.
In the Spotlight: Sell in May and Go Away?
With April nearly over, the market’s best months, based on historical data, are nearly over.
Should you be moving your money to the sidelines?
I’ve been warning readers for weeks now that we could see a pullback in May as the valuation.
Now, that doesn’t mean the sky is falling. I don’t see a full-blown correction coming. Recent events have me convinced that any pullback we do see will be relatively small – somewhere around 8% – 10%.
As always, I’ll be here every trading day to alert you on the best moves to make with your money. Stay tuned.