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KB Home (KBH) Opens Maple Creek, Raises Community Count

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In a bid to expand its community offerings, KB Home (KBH - Free Report) has announced the opening of a new single-family house community — Maple Creek. The all-new home community is located at the prime location of Georgetown, TX, and is very closely situated to highways 29, 35 and 130 Wolf Ranch Town Center and Round Rock Premium Outlets. The community at Maple Creek starts at a reasonable price tag of $300,000.

Maple Creek is a one and two-floored community with a floor area of nearly 1500-2700 square feet. This well-crafted new single-family home community offers highly sophisticated master rooms with sizeable kitchens, vast sleeping rooms with built-in wardrobe and huge attics. Notably, each home shopper gets the opportunity to individualize their new living space according to their preferences.

With respect to this, Ken Langston, president of KB Home’s Austin division, stated, “Maple Creek’s convenient location offers easy access to major highways for a quick commute to Georgetown and Austin-area employers,” said Ken Langston.” He also added “As with other KB Home communities, Maple Creek provides home shoppers the opportunity to purchase a new KB home that can be personalized to reflect their lifestyle and needs.”

With the addition of these new communities, the company now operates in 45 markets across eight states and serves a wide range of buyer groups.

Continuous Community Openings a Boon

KB home has a robust backlog level, a strong line-up of community openings and a solid return-focused growth model. The company invests aggressively in land acquisition and development, mainly in high-end locations, which is critical for community count as well as top-line growth. The company has a strong land pipeline and thus expects double-digit year-over-year growth in community count in 2022 to support market share gains and housing revenue growth. In the first and second quarter of fiscal 2021, it invested $575 million and $566 million, respectively, in land acquisitions and development.

Backlog at the end of second-quarter fiscal 2021 totaled 10,034 homes (as of May 31, 2021), up 98% year over year. Further, potential housing revenues from backlog grew 126% from the prior-year period to $4.29 billion. On the back of these aforesaid drivers, KB home is expected to generate $5.9-$6.1 billion in housing revenues and operating margin in the range of 11.5-12% during fiscal 2021.

So far this year, shares of the company have surged 18% compared with the Zacks Building Products - Home Builders industry’s 13.1% growth

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Zacks Rank & Other Key Picks

Currently, KB Home carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Some top-ranked stocks in the Zacks Building Products - Home Builders industry include Lennar Corporation (LEN - Free Report) , Toll Brothers, Inc. (TOL - Free Report) and Tri Pointe Homes, Inc. (TPH - Free Report) . Lennar and Toll Brothers sport a Zacks Rank #1, while Tri Pointe Homes carries Zacks Rank #2 (Buy).

Lennar and Toll Brothers’ earnings for fiscal 2021 are expected to rise 73.4% and 68.8%, respectively.

Tri Pointe Homes has a trailing four-quarter earnings surprise of 51.3%, on average.

In-Depth Zacks Research for the Tickers Above

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Toll Brothers Inc. (TOL) - free report >>

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Lennar Corporation (LEN) - free report >>

Tri Pointe Homes Inc. (TPH) - free report >>