KB Home (KBH) Boosts Presence With New Townhouse Community
KB Home KBH announced the opening of Bridgepoint, a new townhome community in Chapel Hill. The expansion reflects the company's commitment to meet housing demands and enhance homebuying experience.
Nestled in a convenient location off Homestead Road, Bridgepoint offers a desirable lifestyle for homebuyers. It has easy access to major highways and is close to The University of North Carolina at Chapel Hill, North Carolina Botanical Garden and Homestead Park.
The community will be built per the latest ENERGY STAR guidelines, which will help homebuyers save a reasonable amount in utility costs. The move is sync with its ongoing brand-expansion strategy.
Focus on Expansion
KBH invests aggressively in land acquisition and development, mainly in high-end locations, which is critical for community count and top-line growth. This has eventually helped the company in reducing debt. It is optimistic that this blend of rising active inventory, while reducing annual interest incurred, is expected to boost future gross margin and returns. As of second-quarter fiscal 2023, the company’s lot position stands at 57,932 lots owned or controlled. Of the company’s total lots, nearly 75% were owned and 25% were under contract. KB Home has a strong land pipeline and expects fiscal third-quarter end community count to be up 10% year over year. For fiscal 2023, the metric is expected to be up about 10% year over year.
The company’s Built-to-Order process provides buyers a wide range of choices in the major aspects of their future home along with a personalized customer experience through in-house community teams. This consumer-centric approach helps homebuyers to design a home with the features and amenities of their choice. Not only has this approach given KB Home competitive advantage over its peers, it has led to low-cost production.
The company intends to focus on increasing Built-to-Order sales that will, in turn, help it gain sales momentum in 2024.
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Shares of KBH have increased 61.1% in the past six months compared with the Zacks Building Products - Home Builders industry’s rise of 46.5%.
Zacks Rank & Other Key Picks
KB Home currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks from the Zacks Construction sector are:
Dycom Industries, Inc. DY sports a Zacks Rank #1. DY has a trailing four-quarter earnings surprise of 153.7%, on average. Shares of DY have gained 19.6% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DY’s 2024 sales and earnings per share (EPS) indicates a rise of 8.3% and 41%, respectively, from the year-ago period’s levels.
Eagle Materials Inc. EXP sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 6.5%, on average. Shares of EXP have increased 64.7% in the past year.
The Zacks Consensus Estimate for EXP’s 2024 sales and EPS indicates a rise of 2% and 8.4%, respectively, from the year-ago period’s levels.
Vulcan Materials Company VMC flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 7.1%, on average. Shares of VMC have increased 57.8% in the past year.
The Zacks Consensus Estimate for VMC’s 2023 sales and EPS indicates a rise of 5.9% and 27.6%, respectively, from the year-ago period’s levels.
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Vulcan Materials Company (VMC) : Free Stock Analysis Report
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