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This Homebuilder Breaking Out: Mike Murphy

US homebuilders have reported some of their strongest quarters in several years fueling speculation that the sector is starting to turn the corner.

And trader Mike Murphy managing partner at Rosecliff Capital says amid the results one stock appears to be breaking out -- Toll Brothers.

If you believe the economy is recovering and that economy goes with it, Murphy says Toll Brothers appears to be positioned best.

“Toll builds a completely different product than most other home builders,” Murphy explains on CNBC’s Fast Money Halftime Report. “They focus on luxury and I think that area of the market recovers much more quickly.”

Also Murphy likes the fundamentals. “They have a great balance sheet and great management team,” he says.

“I’d trade against $25.50,” he says, “But I think it’s breaking out.”





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Trader disclosure: On May 2, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Joe Terranova is long VRTS; Joe Terranova is long JOY; Joe Terranova is long JNPR; Joe Terranova is long NXPI; Joe Terranova is long HPQ; Joe Terranova is long LQD; Joe Terranova is long JPM; Joe Terranova is long MCD; Josh Brown is long XBI; Josh Brown is long V; Josh Brown is long COP; Josh Brown is long JPM; Josh Brown is long XLU

For Moshe Orenbuch
The subject company (MA) currently is, or was during the 12-month period preceding the date of distribution of this report, a client of Credit Suisse: MA
Credit Suisse provided investment banking services to the subject company (MA) within the past 12 months: MA
Credit Suisse expects to receive or intends to seek investment banking related compensation from the subject company (MA) within the next 3 months: MA

For Robert Morris
Robert S Morris, Analyst, holds a long position in the securities of CHK
Within the past 12 months, Citigroup Global Markets Inc. or its affiliates has acted as manager or co-manager of an offering of securities of CHK
Citigroup Global Markets Inc. or its affiliates has received compensation for investment banking services provided within the past 12 months from CHK
Citigroup Global Markets Inc. or an affiliate received compensation for products and services other than investment banking services from Chesapeake Energy Corp in the past 12 months: CHK
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as investment banking client(s): CHK
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as clients, and the services provided were non-investment-banking, securities-related: CHK
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as clients, and the services provided were non-investment-banking, non-securities-related: CHK
Citigroup Global Markets Inc. or an affiliate received compensation in the past 12 months from CHK

For Robin Farley
UBS AG, its affiliates or subsidiaries beneficially owned 1% or more of a class of the following companies' common equity securities as of last month`s end (or the prior month`s end if this report is dated less than 10 days after the most recent month`s end): WYNN
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and investment banking services are being, or have been, provided.: LVS
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and investment banking services are being, or have been, provided.: MGM
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and investment banking services are being, or have been, provided.: WYNN
Within the past 12 months, UBS Securities LLC has received compensation from this company/entity: LVS
Within the past 12 months, UBS Securities LLC has received compensation from this company/entity: MGM
Within the past 12 months, UBS Securities LLC has received compensation from this company/entity: WYNN

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