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Taylor Wimpey suffered in the wake of the Brexit vote, but its shares have recovered since then. March results showed that the firm had a good year overall in 2016, with a 17% rise in revenue, and profits up by over a fifth. A 7% yield and a still cheap valuation at 10 times forward earnings suggest that Taylor Wimpey offers impressive returns over the longer term.
The company has been rising steadily since the November low, and now looks set to head to 211p, the 2016 high. There are no signs that the trend is at an end, with the progression of higher lows and higher highs going back to November. It would need a definitive move below 190p to begin to suggest a more bearish outlook.