As Wall Street firms direct clients to housing stocks as the next big area of opportunity, CNBC Pro used technical and fundamental analysis to find the names that are primed to rally on the continuation of this trend.
Investors got two pieces of evidence the housing sector is alive and well Tuesday after the government said housing starts approached an eight-year high and Home Depot credited the "continued recovery of the U.S. housing market" for better-than-expected sales last quarter. Data on existing home sales are due Thursday.
Similarly, JPMorgan told clients last week that "there are there are few opportunities in U.S. equities that offer stronger growth and cheaper valuation than housing."
So which names could be ready to rise?
Our chart breakdown was conducted by Carter Worth, head of technical analysis at Cornerstone Macro. The technician reviewed 200 housing-related stocks to find the ones he deems as "buying" opportunities.
Among his picks, we then screened for the ones sell-side analysts love the most for their fundamentals.
With the charts and fundamentals aligned, the stocks in this report could be great breakout candidates.