As previously mentioned, there will be no issue of Cabot Stock of the Week in this short holiday week. But I do have this special bulletin recommending that you sell Pulte Home (PHM).
Pulte Group (PHM), originally recommended by Crista Huff of Cabot Undervalued Stocks Advisor for her Growth portfolio, is now rated Sell, simply because it has come so far so fast.
In today’s update, Crista wrote, “PHM rose roughly 78% this year, and is still climbing. That’s just ridiculous. I’m selling PHM today because it’s extremely overdue for a price correction, and I’d rather sell now than watch it fall. Traders who decide to hold their shares should use stop-loss orders. Long-term investors who decide to hold will still own a very undervalued aggressive growth stock.”
I recommend selling now and redeploying the cash in a lower-risk stock, like BB&T (BBT), Nucor (NUE) or Pembina Pipeline (PBA). Sell.