Another is ADT Corp. ( ADT), which reported March quarter results that fell shy of Wall Street expectations by $0.02 per share. Keep in mind consensus expectations were for $0.43 per share and the company delivered $0.41 per share -- a 5% miss. Given the way the market has been treating misses, ADT shares will get hurt today. Now, sifting through the release we find that recurring revenue grew year-over-year and accounts for 92% of total revenue.

The company has been actively buying back stock. All told, since the $2 billion repurchase authorization was announced last November, ADT has repurchased $800 million shares. Not only did the company add 303,000 new customers to close the quarter with 6.5 million customer accounts, but despite the miss the management team reiterated its 2013 guidance.

I first recommended ADT shares as way to play the rebounding housing market. Since then we've continued to receive strong housing data -- new home sales, housing starts and the like.

The key question here is do we see any slowdown in the housing recovery? My thesis on ADT shares has not changed and the long-term view still looks bright. As with Nuance shares, I would recommend Real Money Pro subscribers who have sat on the sidelines with ADT to use any weakness to get involved in the shares at current levels for long-term profits. ADT was trading about $41.50 in late morning Wednesday trade.

At the time of publication, Versace held no positions in the stocks mentioned.
Christopher Versace writes the " PowerTrend Profits" newsletter and " ETF PowerTrader" trading service, which both use a thematic investing perspective that ties in economics, demographics, psychographics, technology and more. He's also the host of PowerTalk, a weekly podcast that features conversations with public and private management teams, as well as other thought leaders, for the benefit of both individual and institutional investors.

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