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KB Home Ups Community Count with Cayden Creek Homes

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With the prospect of strong housing recovery in 2016, most homebuilders are seeking to strengthen their position. KB Home (KBH - Free Report) consistently aims to boost its community count in the highly favorable submarkets as part of its growth strategy.

Earlier this week, KB Home opened a new community called Cayden Creek, Conroe. Price of Cayden Creek homes start from $170,000s.  Cayden Creek homes offer nine one and two story floor plans, which can accommodate five bedrooms, three and a half baths and a 2-car garage.  

Cayden Creek homes are ENERGY STAR certified and incorporate energy efficient features, which will help homeowners to save on their utility bills over the years.

Cayden Creek homes are located close to prime employments centers in The Woodlands and downtown Houston. The community is served by Conroe Independent School District. The residents will have access to facilities such as fishing and boating at the Lake Conroe, swimming and fitness programs at Conroe Aquatic Center, and shopping and entertainment at the Outlets at Conroe. The addition of Cayden Creek homes will strengthen KB Home’s community count, which can drive its top line in the near term.

Earlier this week, KB Home reported impressive second quarter fiscal 2016 results. Quarterly adjusted earnings of 17 cents per share surpassed the Zacks Consensus Estimate of 16 cents by 6.3%. The bottom line also surged 70% from adjusted earnings of 10 cents reported in the prior-year quarter.

Total revenue of $811.1 million in the second quarter of 2016 beat the Zacks Consensus Estimate of $753 million by 7.7%. Revenues soared 30% year over year driven by a higher-than-expected increase in housing revenues.  

KB Home carries a Zacks Rank #3 (Hold).

Stocks to Consider

Better-ranked stocks in the construction sector include Masco Corporation (MAS - Free Report) , TopBuild Corp. (BLD - Free Report) and GCP Applied Technologies Inc. . While TopBuild sports a Zacks Rank #1 (Strong Buy), Masco and GCP have a Zacks Rank #2 (Buy).

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