Stock to Buy for 3-1-13 – MDC Holdings Inc. – MDC

My stock trade for March 1st is MDC Holdings Inc – $MDC.

The past four quarters, they have beaten their earnings estimates by a wide margin. They have continued to grow in share price from a low of 22.72 almost a year ago to the most recent high of 42.41. Currently at 38.43, they are around 10% off their high. The market has been a bit erratic lately, so this isn’t much of a surprise.

The company is involved in home building and financial services and both of those areas have been improving in the past year. I think this trend will continue which is turn will help grow MDC, as it has for the past 4 quarters at least.

As we head toward their next earnings report in May, I expect their share price to head back toward their most recent high at the very least, if not go a bit higher toward 45.00.

The stock also provides a dividend each quarter which is currently yielding 2.7% which is a little extra incentive if you decide to hold onto the stock for a while.

You may want to wait till next week before you pull the trigger as the market may be in negative mode due to the sequester cuts that hit because Congress decided not to act.