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Century Communities (CCS) Expands With Landmark Homes Deal
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Century Communities, Inc. (CCS - Free Report) acquired most assets of a well-established homebuilder in Greater Nashville, Landmark Homes of Tennessee, Inc. This acquisition expands CCS's land and lot holdings in Tennessee, reinforcing its position as a national leader in online home buying.
This strategic move further solidifies Century Communities' position as a leading builder in Greater Nashville. It expands the company's presence in the growing metro with more than 800 additional lots. These include homes currently available in six active Landmark Homes communities in Lebanon, Mount Juliet, Hermitage, Murfreesboro and Brentwood. Catering to first-time and move-up buyers, Landmark Homes' existing inventory is priced from the low $300k to the low $600k.
The transaction aligns with the company's goal of increasing community count and market share, both within and beyond its geographic footprint, through acquisitions of other homebuilders, complementing the organic expansion of its land portfolio. The company is optimistic in this regard and intends to provide ‘A Home For Every Dream’ to more buyers in desirable locations.
Focus on Expansion
Shares of CCS have surged 52.8% in the past three months compared with the Zacks Building Products - Home Builders industry’s 49.4% growth. Century Communities continues to focus on increasing its community count. At the end of third-quarter 2023, the community count increased 16% year over year and 8% sequentially to 233 communities.
Image Source: Zacks Investment Research
At the end of the quarter, the company had about 69,000 owned and controlled lots, up 19% sequentially. The upside was primarily driven by an increase of 11,000 lots in controlled land, totaling 38,000 lots. The company's controlled lots, as a percentage of total lots, increased to 56% in the third quarter compared with 46% in the previous quarter.
For 2023-end, the company anticipated a community count in the range of 250-260, reflecting a robust year-over-year growth of 20-25%. This is expected to be a new base for Century Communities, with plans to expand further as increased deliveries are expected in 2024 and beyond.
Here are some other top-ranked stocks from the Zacks Construction sector:
Armstrong World Industries, Inc. (AWI - Free Report) flaunts a Zacks Rank of #1. AWI delivered a trailing four-quarter earnings surprise of 7.9%, on average. The stock has rallied 34.2% in the past year.
The Zacks Consensus Estimate for AWI’s 2024 sales and earnings per share (EPS) indicates growth of 1.3% and 6.8%, respectively, from the previous year’s levels.
TopBuild Corp. (BLD - Free Report) carries a Zacks Rank of #2 (Buy). It has a trailing four-quarter earnings surprise of 14.3%, on average. Shares of BLD have increased 98.7% in the past year.
The Zacks Consensus Estimate for BLD’s 2024 sales and EPS indicates an increase of 7.1% and 4.9%, respectively, from the year-ago period’s levels.
Eagle Materials Inc. (EXP - Free Report) sports a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 5.4%, on average. Shares of EXP have increased 46.4% in the past year.
The Zacks Consensus Estimate for EXP’s 2024 sales and EPS suggests growth of 4.4% and 13%, respectively, from the year-ago period’s levels.
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Century Communities (CCS) Expands With Landmark Homes Deal
Century Communities, Inc. (CCS - Free Report) acquired most assets of a well-established homebuilder in Greater Nashville, Landmark Homes of Tennessee, Inc. This acquisition expands CCS's land and lot holdings in Tennessee, reinforcing its position as a national leader in online home buying.
This strategic move further solidifies Century Communities' position as a leading builder in Greater Nashville. It expands the company's presence in the growing metro with more than 800 additional lots. These include homes currently available in six active Landmark Homes communities in Lebanon, Mount Juliet, Hermitage, Murfreesboro and Brentwood. Catering to first-time and move-up buyers, Landmark Homes' existing inventory is priced from the low $300k to the low $600k.
The transaction aligns with the company's goal of increasing community count and market share, both within and beyond its geographic footprint, through acquisitions of other homebuilders, complementing the organic expansion of its land portfolio. The company is optimistic in this regard and intends to provide ‘A Home For Every Dream’ to more buyers in desirable locations.
Focus on Expansion
Shares of CCS have surged 52.8% in the past three months compared with the Zacks Building Products - Home Builders industry’s 49.4% growth. Century Communities continues to focus on increasing its community count. At the end of third-quarter 2023, the community count increased 16% year over year and 8% sequentially to 233 communities.
Image Source: Zacks Investment Research
At the end of the quarter, the company had about 69,000 owned and controlled lots, up 19% sequentially. The upside was primarily driven by an increase of 11,000 lots in controlled land, totaling 38,000 lots. The company's controlled lots, as a percentage of total lots, increased to 56% in the third quarter compared with 46% in the previous quarter.
For 2023-end, the company anticipated a community count in the range of 250-260, reflecting a robust year-over-year growth of 20-25%. This is expected to be a new base for Century Communities, with plans to expand further as increased deliveries are expected in 2024 and beyond.
Zacks Rank & Other Key Picks
Century Communities currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Here are some other top-ranked stocks from the Zacks Construction sector:
Armstrong World Industries, Inc. (AWI - Free Report) flaunts a Zacks Rank of #1. AWI delivered a trailing four-quarter earnings surprise of 7.9%, on average. The stock has rallied 34.2% in the past year.
The Zacks Consensus Estimate for AWI’s 2024 sales and earnings per share (EPS) indicates growth of 1.3% and 6.8%, respectively, from the previous year’s levels.
TopBuild Corp. (BLD - Free Report) carries a Zacks Rank of #2 (Buy). It has a trailing four-quarter earnings surprise of 14.3%, on average. Shares of BLD have increased 98.7% in the past year.
The Zacks Consensus Estimate for BLD’s 2024 sales and EPS indicates an increase of 7.1% and 4.9%, respectively, from the year-ago period’s levels.
Eagle Materials Inc. (EXP - Free Report) sports a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 5.4%, on average. Shares of EXP have increased 46.4% in the past year.
The Zacks Consensus Estimate for EXP’s 2024 sales and EPS suggests growth of 4.4% and 13%, respectively, from the year-ago period’s levels.