MLI Forecast + Trading Strategies




Price Forecast:


Bearish<->Bullish




Bullish Case: MLI's strong fundamentals, improved housing demand, and infrastructure investments can propel prices higher, especially given the low implied volatility and mean-reverting behavior. Potential acquisitions may bolster growth further.




Bearish Case: Increased market volatility could apply pressure on MLI's price, with forecasts indicating a risk of declining earnings due to commodity price fluctuations and potential demand downturns in housing.




Potential Outcomes:

1. Housing demand surges, driving MLI price up (50% chance).

2. Commodity prices remain volatile, leading to earnings instability (30% chance).

3. Acquisition or strategic partnerships enhance growth (20% chance).




Trading Oracle: Consider a bullish debit spread by buying MLI $90 calls and selling $95 calls, expiring in December. Capitalize on MLI's potential upside with limited risk, leveraging low near-term volatility for high reward potential.



November 19, 2024


Mueller Industries Forecast

MLI        Mueller Industries











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