Barratt Developments (Q3 trading statement 10 May)
Barratt’s recent update said that the firm had a good first half, as a result of a strong order book and solid consumer demand. Earnings are expected to keep growing in the 5%-6% range, and with a dividend of 7.8% for the current year, and at just 8.6 times forward earnings, the firm still looks to have plenty of solid demand behind it.
The price has stabilised, finding a low at £5.13, but while it has bounced from there, it has yet to take out the £5.77 high from February. A move above here, and ideally above £5.80, would signal a clearance of both horizontal resistance and the trendline resistance from the October highs.