This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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.