M.D.C. Holdings, Inc.’s or MDC subsidiary, Richmond American Homes of California, has been focusing on expanding reach in new and existing locations. To that end, it unveiled three new communities — Seasons Ranch, Seasons Elevated and Liberty at Braverde — in Menifee.

The communities will have ranch and two-story floor plans with designer details as well as nine new models. Also, the location is in close proximity to SR-79 and I-215 as well as various amenities.

Solid Expansion Spree & Favorable Housing Markets Bode Well

MDC remains focused on growing demand for entry-level homes, addressing the need for lower-priced homes, given affordability concerns prevailing in the U.S. housing market. The company invests aggressively in land acquisition and development, which is critical for top-line growth.

Image Source: Zacks Investment Research

Shares of MDC have gained 33.5% over a year compared with the industry's 28.1% rally. The upside is likely to continue, given accretive acquisitions, its focus on the Build-to-Order process and solid housing market backdrop.

Owing to favorable housing market fundamentals, MDC has witnessed a rise in consumer demand, which in turn is driving new orders. New single-family homes’ demand has seen a v-shaped recovery throughout the country and it is not an exception. A combination of lower interest rates and rising need for more work-at-home space has positively impacted affordability, thereby helping the company deliver solid performance

Zacks Rank

MDC — which shares space with PulteGroup, Inc. (PHM Quick QuotePHM - Free Report) , Toll Brothers Inc. (TOL Quick QuoteTOL - Free Report) and D.R. Horton, Inc. (DHI Quick QuoteDHI - Free Report) in the same industry — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.