With the housing market gaining momentum, most homebuilding companies are investing in building more homes to meet the growing demand. The Ryland Group Inc. (RYL - Snapshot Report) is also aggressively investing in land and development in order to build more homes. Recently, it unveiled single-family homesites at The Boulders in Fishers, IN.
Priced at $280,000 and upwards, the homes, part of Ryland’s Estate Collection, are two storied, including up to five bedrooms and 5½ baths, with 3-car side entry garages or 2-car courtyard garages. The community will offer recreational opportunities like multiple golf courses and many shopping, dining and entertainment options.
In second quarter of fiscal 2013, RYL spent $176 million on land acquisitions and $62 million on site development during the quarter. Ryland Group posted second quarter of 2013 results where in it reported adjusted net earnings of 80 cents per share surpassing the Zacks Consensus Estimate of 64 cents by 25% and the year-ago earnings of 14 cents by a considerable margin. The earnings upsurge was driven by top-line growth and margin expansion.
Total revenue though lagged the Zacks Consensus Estimate by 1.0%, it climbed 67.8% year over year, driven by better pricing power and volume growth owing to improved market conditions.
Ryland Group carries a Zacks Rank #3 (Hold). Other stocks in the construction sector that are performing well and deserve a mention include Boise Cascade Co. (BCC - Snapshot Report), Meritage Homes Corp. (MTH - Snapshot Report) and Rayonier Inc. (RYN - Snapshot Report). While Boise Cascade has a Zacks Rank #1 (Strong Buy), Meritage Homes and Rayonier carry a Zacks Rank #2 (Buy).