In a bid to maintain its housing business momentum,
KB Home ( KBH Quick Quote KBH - Free Report) recently announced the opening of a few home communities across the country. Recently, the company announced the opening of four new home communities. First, Santorini — a new community in a prime location of Stockton, CA. The community at Stanton starts at a price tag of $460,000. Next is Marbella Park — starting at a price of $300,000 — a home community located in the most popular area of West Phoenix, AZ. Another one, Creekside — a new home community located in Victorville, CA —voffers customised, new homes in San Bernardino County. This community starts from the economic range of $390,000. And finally, Mountain Enclave — a new-home community located in the regions of Central Tucson, AZ. Home owners are offered new homes at the starting price range of $300,000. KB Home enjoys a competitive advantage in serving home buyers by giving them the exceptional opportunity to customize their choices according to their needs and affordability. With the addition of these new communities, the company now operates in 42 markets across eight states and serves a wide range of buyer groups. Robust Community Openings Driving Growth
KB Home invests aggressively in land acquisition and development, mainly in high-end locations, which is critical for community count as well as top-line growth. This eventually helped the company in reducing debt. The company is optimistic that this blend of rising active inventory, while reducing its annual interest incurred, will boost future gross margin and returns. The company reported solid first-half fiscal 2021 results, with a robust backlog level, a strong line-up of community openings and a solid return-focused growth model. As a result, KB Home expects higher community count beginning second-half 2021.
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. Also, the company’s customer-centric approach provides buyers a wide range of choices in the major aspects of their future homes along with a personalized customer experience through in-house community teams. So far this year, shares of the company have surged 29.6% compared with the Zacks Building Products - Home Builders industry’s 25.3% rally. The company is benefiting from a robust backlog level, a strong line-up of community openings and a returns-focused growth model. Moreover, earnings estimates have moved up 4% over the past 60 days, depicting analysts’ optimism over the company’s growth potential. Image Source: Zacks Investment Research Zacks Rank & Other Key Picks
Currently, KB Home carries a Zacks Rank #2 (Buy). You can see
. the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Other top-ranked stocks in the same industry include Toll Brothers, Inc. ( TOL Quick Quote TOL - Free Report) , Century Communities, Inc. ( CCS Quick Quote CCS - Free Report) and Tri Pointe Homes, Inc. ( TPH Quick Quote TPH - Free Report) , each carrying a Zacks Rank #2. Toll Brothers’ fiscal 2021 earnings are expected to surge 75%. Century Communities and Tri Pointe’s earnings for 2021 are expected to rise 119.4% and 66.8%, respectively.