The housing sector has been firing on all cylinders. Everything from lumber and home-improvement stores to suppliers to mortgage REITs have been benefiting. Including the home builders like DR Horton (NYSE:DHI), Lennar (NYSE:LEN) and KB Home (NYSE:KBH) are in the mix. But there's one home builder that often gets overlooked. And that can be a good thing. CalAtlantic Group (NYSE:CAA) builds single-family homes in the North, Southeast, Southwest and West.
Its stock price shows a steady rise off of a bottom with the market in February. A series of higher lows and higher highs reveals an uptrend. As it approaches the bump in late December, it has been consolidating. A two-stage pullback in June reacquainted it with the 200-day SMA and then it started back higher. It tested that high again on Thursday.
This stock has a bullish and rising RSI and a MACD that is just crossing up to support more upside. A push through the resistance at 38.40 carries a target to 42.40, just below the December high. Like many housing stocks, it has high short interest, at almost 12%. And it does not have a following on Stocktwits.
Have you overlooked this $4 billion builder?