KB Home (KBH - Free Report) recently introduced Apple HomeKit-enabled community at its Promenade at Communications Hill, San Jose. This makes KB Home the first company in the U.S. to incorporate a HomeKit smart package in its community. The package will also be available at KB Home's Magnolia at Patterson Ranch community.
HomeKit is Apple's iOS platform which allows homeowners to control smart home gadgets like locks and lighting through Apple's Home app on their iPhones, iPads and watches.
Meanwhile, the community is in close proximity to San Jose’s shopping, dining, nightlife and cultural attractions, Silicon Valley employers as well as major transportation routes. The three-story floor plans, priced at low-$900,000s, can feature up to five bedrooms, four bathrooms, two garages and 2,148 to 2,178 square feet of floor space.
Meanwhile, the “smart” facility in the community will appeal to today’s tech-savvy buyers. KB Home has also designed a model home at the community to demonstrate the use of the HomeKit package to potential buyers.
Notably, over the last three years, KB Home has been focusing on several strategic initiatives to drive profit and revenues. The company frequently opens communities in 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 in third-quarter 2016, is expected to drop further in the fourth quarter.
However, a healthy housing industry and strong demand trends drove KB Home’s quarterly results. The company also 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 #3 (Hold).
Stocks to Consider
Better-ranked stocks in the construction industry include Gibraltar Industries, Inc. (ROCK - Free Report) , Hovnanian Enterprises Inc. (HOV - Free Report) 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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