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KB Home (KBH) Unveils Centerpointe Community in Downey
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KB Home (KBH - Free Report) recently announced the opening of Centerpointe community in Downey, LA.
The community’s location will provide owners easy access to major transportation routes that lead to commercial and employment hubs and numerous entertainment, cultural and recreational centers throughout Southern California. Along with this, top medical facilities, golf courses, shopping and dining options in the downtown area will be within reach.
All houses in Centerpointe will be designed in an energy and water efficient manner since KB Home uses ENERGY STAR certification and WaterSense-labeled faucets and water fixtures. These features help owners reduce their monthly utility bills.
KB Home has been focusing on several strategic initiatives over the last few years to drive profit and revenues. One of its primary targets has been to increase community count.
The company regularly opens communities in highly favorable submarkets to drive growth. KB Home recently-opened communities include Shadow Glen in Marana, Promenade at Communications Hill in San Jose, Vineyard Square in Windermere, Sonoran Ranch II in Tucson and Cedar Brook in Houston.
However, at the end of the last reported quarter, average community count was 235, down 9% year over year. It is expected to drop further in the fourth quarter by about 8% year over year. Nonetheless, these new communities can be expected to drive the community count sequentially from the first quarter of fiscal 2017.
Housing experts believe that the rapid growth in the economy and wages is driving the interest rate hike. Following the modest 25-basis point hike, the Fed has expressed its confidence in the U.S. economy and forecasts three hikes in 2017, up from the two projected in Sep 2016. Also, a booming economy boosts income. Thus, if the rise in income offsets the increase in mortgage payment, the housing market is likely to do just fine.
Investors should note that shares of KB home gained around 70% in the last one year period compared to the Building-Residential/Commercial industry’s growth of 8.5%. Moreover, the company has a decent earnings history, beating estimates in three of the past four quarters at an average of 6.38%. Earnings, however, for this Zacks Rank #3 (Hold) stock is expected to decline 13.5% in the soon-to-be-reported quarter.
Stocks to Consider
Better-ranked stocks in the sector include Gibraltar Industries, Inc. (ROCK - Free Report) , Century Communities, Inc. (CCS - Free Report) and Hovnanian Enterprises Inc. (HOV - Free Report) .
Full-year 2016 earnings for Gibraltar are expected to decline 44.9%.
Hovnanian is expected to witness 28.6% growth in fiscal 2017 earnings while Century’s 2016 earnings are expected to rise 22.6%.
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Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
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KB Home (KBH) Unveils Centerpointe Community in Downey
KB Home (KBH - Free Report) recently announced the opening of Centerpointe community in Downey, LA.
The community’s location will provide owners easy access to major transportation routes that lead to commercial and employment hubs and numerous entertainment, cultural and recreational centers throughout Southern California. Along with this, top medical facilities, golf courses, shopping and dining options in the downtown area will be within reach.
All houses in Centerpointe will be designed in an energy and water efficient manner since KB Home uses ENERGY STAR certification and WaterSense-labeled faucets and water fixtures. These features help owners reduce their monthly utility bills.
KB Home has been focusing on several strategic initiatives over the last few years to drive profit and revenues. One of its primary targets has been to increase community count.
The company regularly opens communities in highly favorable submarkets to drive growth. KB Home recently-opened communities include Shadow Glen in Marana, Promenade at Communications Hill in San Jose, Vineyard Square in Windermere, Sonoran Ranch II in Tucson and Cedar Brook in Houston.
However, at the end of the last reported quarter, average community count was 235, down 9% year over year. It is expected to drop further in the fourth quarter by about 8% year over year. Nonetheless, these new communities can be expected to drive the community count sequentially from the first quarter of fiscal 2017.
Housing experts believe that the rapid growth in the economy and wages is driving the interest rate hike. Following the modest 25-basis point hike, the Fed has expressed its confidence in the U.S. economy and forecasts three hikes in 2017, up from the two projected in Sep 2016. Also, a booming economy boosts income. Thus, if the rise in income offsets the increase in mortgage payment, the housing market is likely to do just fine.
Investors should note that shares of KB home gained around 70% in the last one year period compared to the Building-Residential/Commercial industry’s growth of 8.5%. Moreover, the company has a decent earnings history, beating estimates in three of the past four quarters at an average of 6.38%. Earnings, however, for this Zacks Rank #3 (Hold) stock is expected to decline 13.5% in the soon-to-be-reported quarter.
Stocks to Consider
Better-ranked stocks in the sector include Gibraltar Industries, Inc. (ROCK - Free Report) , Century Communities, Inc. (CCS - Free Report) and Hovnanian Enterprises Inc. (HOV - Free Report) .
All three companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Full-year 2016 earnings for Gibraltar are expected to decline 44.9%.
Hovnanian is expected to witness 28.6% growth in fiscal 2017 earnings while Century’s 2016 earnings are expected to rise 22.6%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>