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KB Home (KBH - Free Report) continues to see strong housing demand as 2017 shapes up to be the best year for the homebuilders in a decade. This Zacks Rank #1 (Strong Buy) is expected to see earnings jump 52% in 2017.

KB Home is one of the largest homebuilders in the United States with developments in 36 markets in 7 states. It specializes in first time buyers, move-up buyers and active adults. It is headquartered in Los Angeles.

Another Big Beat in the Second Quarter

On June 27, KB Home reported its second quarter results and blew by the Zacks Consensus by 7 cents. Earnings were $0.33 versus the consensus of $0.26.

It was the 6th consecutive earnings beat in a row.

Revenue jumped 24% to $1 billion as deliveries rose 11% to 2,580 homes. Three of the company's four regions saw double-digit increases.

The average selling price also continued to rise, as inventory remained low and demand remained high. It jumped 11% to $385,900.

The backlog continued to rise, adding 19% to $2.18 billion. The average selling price of the homes in the backlog rose 11%.

Cash and cash equivalents at the end of the quarter were $348.6 million with total liquidity of $591.2 million.

Estimates Jump Higher

Not surprisingly, the analysts liked the bullish report and raised estimates.

8 estimates were raised after the report which sent the Zacks Consensus Estimate higher to $1.70 versus $1.61. That's 52% earnings growth compared to fiscal 2016.

Analysts are also bullish about 2018. They expect another 28% earnings growth.

Shares Still Cheap

Despite the shares having gained 47% year-to-date, they're still cheap.



KB Home trades with a forward P/E of just 13.9. That makes it a rare value stock that also has strong growth.

For investors looking for a genuine value stock in this hot stock market, KB Home is one to keep on the short list.

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