LGI Homes (LGIH) Introduces its Third Community in California
Amid rebounding demand for commercial real estate, LGI Homes, Inc. LGIH recently announced the opening of its third community — Harvest Grove — in Bakersfield, CA. Given the community’s offering of a variety of single-family homes equipped with upgrades in a prime location, it is likely to draw homebuyers, making LGIH’s recent move seem prudent.
Strategically located off I-5 and SH-99, homebuyers in Harvest Grove will be able to access exciting attractions, major employers and incredible dining and shopping opportunities in Southwest Bakersfield that are only 10 minutes away. Further, with a large community park and more than 20 local parks, homebuyers can engage in an array of outdoor activities.
The company’s community will comprise a collection of five move-in-ready floor plans for buyers. The size of homes will range from 1,106 square feet to more than 2,400 square feet with up to five bedrooms and three bathrooms, with prices starting from the $360s and availability of quick move-in opportunities.
These spacious homes will come with chef-inspired kitchens, covered outdoor areas and built-in energy-efficient features like ENERGY STAR lighting, double-pane Low-E vinyl windows and a programmable thermostat.
Moreover, with real estate developers resorting to digital transformation due to the pandemic-induced behavioral changes of consumers, each home will be equipped with designer features and stylish interior upgrades that are part of LGI Homes’ CompleteHome™ package. This will include a full suite of stainless-steel Whirlpool® kitchen appliances, including the refrigerator, sparkling granite countertops, modern wood cabinetry with crown molding and luxury vinyl plank flooring, to name a few.
This Woodlands, TX-based company is a pioneer in the homebuilding industry, engaged in the design, construction and sale of homes across 35 markets in 20 states through an innovative and systematic approach. Notably, the company has closed more than 65,000 homes since its founding in 2003.
Recently, LGIH announced the opening of Dantoni Ranch, a new community in Sacramento, CA, with prices starting from the high $300s. Homes in the community, ranging in size from 1,104 square feet to just more than 2,000 square feet, will be equipped with LGIH’s popular CompleteHome™ package, offering homebuyers attractive facilities.
Per Jeanine Roach, vice president of Sales for Northern California, “This new community offers beautiful country living, with amazing views, yet it’s just five minutes from Hwy 65 and Hwy 70. These brand-new homes offer so much for our families to enjoy.”
The increase in demand for new-age real estate developments and the company’s continued efforts to reduce the cost of homeownership through a combination of mortgage buy-down programs and other sales incentives are likely to drive its sales volume in the upcoming period.
Analysts seem bullish on this Zacks Rank #1 (Strong Buy) company. The Zacks Consensus Estimate for its 2023 earnings per share (EPS) has been revised 7.5% upward over the past month to $8.14.
The shares of the company have gained 27.9% in the year-to-date period compared with the industry’s growth of 21.9%.
Nonetheless, a cautious investor approach amid macroeconomic activity and a high-interest rate environment are worrisome. Also, increased construction costs amid supply-chain constraints pose concerns for the company.
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Other Stocks to Consider
Some other top-ranked stocks from the broader real estate industry are KE Holdings BEKE and Forestar Group FOR, each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for KE Holding’s 2023 EPS has moved 4.5% northward over the past month to 93 cents.
The Zacks Consensus Estimate for Forestar Group’s fiscal 2023 EPS has moved 23.6% upward over the past month to $2.83.
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