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Bull of the Day: KB Homes (KBH)

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In case you haven’t noticed, interest rates are low. Very low. Historical lows, in fact. That makes buying a house a very attractive proposition. You can now guess what industry my Bull of the Day today is going to be in. This Bull of the Day is also a Zacks Rank #1 (Strong Buy). That means over the last few months, analysts all over Wall St. have been increasing their earnings estimates. That bullish behavior could be a sign of good things to come.

I’m talking about Zacks Rank #1 (Strong Buy) KB Homes (KBH - Free Report) . KB Home operates as a homebuilding company in the United States. It operates through four segments: West Coast, Southwest, Central, and Southeast. The company builds and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, first move-up, second move-up, and active adult homebuyers. It also offers financial services, such as insurance products and title services. It has operations in Arizona, California, Colorado, Florida, Nevada, North Carolina, Texas, and Washington.

KB Home Price and Consensus

KB Home Price and Consensus

KB Home price-consensus-chart | KB Home Quote

The reason for the favorable Zack Rank lies in the series of estimate revisions coming in to the upside recently. Over the last 60 days, six analysts have increased their estimates for the current year, while two have followed suit for next year. The bullish sentiment has pushed up the Zacks Consensus Estimate for the current year from $3.46 to $3.70 while next year’s number is up from $3.81 to $4.04.

What’s more impressive is the EPS growth. Current year EPS growth is slated to come in at 29.82% year-over-year. Next year’s EPS growth is 9.19%. That’s coming on revenue growth of 14.35% this year and 6.96% next year.

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