KB Home (KBH - Free Report) announced the opening of a new townhome community, Vineyard Square, in Windermere, FL.
The community’s location will provide its potential buyers easy access to major transportation routes and employers in Orlando. Along with this, attractions like Walt Disney World, Orange County National Golf Center and Lodge, Universal Orlando Resort, Tibet-Butler Preserve and several dining and shopping facilities will be within reach.
All houses in Vineyard Square will be designed in an energy and water efficient manner since KB Home uses ENERGY STAR certification and WaterSense-labeled faucets and water fixtures. These features help owners reduce their monthly utility bills.
Also, Vineyard Square residents will be able to customize their homes in accordance with their lifestyle and budget.
The two-story floor plans, priced at $240,000, will feature up to four bedrooms, two-and-a-half bathrooms, and 2,113 square feet of floor space. Homeowners will also get to enjoy low-maintenance living and several community amenities.
Notably, over the last three years, KB Home has focused on several strategic initiatives to drive profit and revenues. One of its primary targets has been to increase community count. The company regularly opens communities in highly favorable submarkets to drive growth. KB Home’s recently-opened communities include Talesera Hills in Las Vegas, Sonoran Ranch II in Tucson and Cedar Brook in Houston.
Investors should keep in mind that KB Home’s community count, which declined during third-quarter 2016, is expected to drop further in the fourth quarter. Though demand in Houston is stabilizing, it will take a while before it bounces back.
However, a healthy housing industry and strong demand trends in the markets served by KB Home drove strong quarterly results. It benefitted from strong backlogs in the previous quarters and broke the previous trend of soft revenues resulting from delays in construction and lower number of homes delivered in 2015.
KB HOME Price
KB Home carries a Zacks Rank #4 (Sell).
Stocks to Consider
Better-ranked stocks in the construction industry include Gibraltar Industries, Inc. (ROCK - Free Report) , Hovnanian Enterprises Inc. and Toll Brothers Inc. (TOL - Free Report) .
Gibraltar sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
Full-year 2016 earnings for Gibraltar are expected to grow 44.9%.
Hovnanian, a Zacks Rank #2 (Buy) stock, is expected to witness 190.9% growth in fiscal 2016 earnings.
Toll Brothers carries a Zacks Rank #2. Fiscal 2016 earnings for the company are expected to rise 21.9%.
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