MDC's Richmond American Homes Unveils Model Homes in Aurora
M.D.C. Holdings, Inc.’s MDC subsidiary unit, Richmond American Homes of Colorado’s Boston and Chicago model homes debuted at Aurora under the Urban Collection at Copperleaf.
The homes under the Urban Collection offer two-paired floor plans stretching up to approx. 1,470 sq. ft., starting from $400s. The homes emanate contemporary designs, which house three bedrooms, an inviting layout and a low-maintenance yard. Also, quick move-in homes are available.
The distinctive model homes at Urban Collection at Copperleaf are available for touring on Oct 21.
Increasing Demand Boosts Growth Prospects
Shares of M.D.C. Holdings have gained 22.8% year to date compared with the Zacks Building Products - Home Builders industry’s 30.1% rise. Although the company’s shares have underperformed its industry, the current housing market scenario will back its growth trend in the upcoming period.
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Notably, this new home construction company’s earnings estimates for the to-be-reported quarter have increased to $1.18 per share from $1.17 per share in the past 30 days. Solidifying this prospect, it portrays a VGM Score of A, backed by a Value Score of A, a Growth Score of B and a Momentum Score of A.
The company is benefiting from the current housing market scenario, which portrays increasing demand for new homes due to the lack of existing homes supply. This homebuilding company is gaining notably despite the ongoing uncertain economic conditions.
Attributable to the above-mentioned tailwind, in second-quarter 2023, MDC’s net new orders notably grew 54.3% year over year to 2,167 units. Simultaneously, the value of net orders increased 36.8% from the year-ago quarter’s levels to $1.21 billion. This upward trend was again backed by a reduction in cancellations. Cancellations, as a percentage of gross sales, decreased to 20.2% from 37.2%, year over year. Furthermore, the monthly absorption rate also increased by 34% from the prior-year period.
Zacks Rank
M.D.C. Holdings currently sports a Zacks Rank #1 (Strong Buy).
Other Key Picks
Some top-ranked stocks from the Construction sector are Installed Building Products, Inc. IBP, Construction Partners, Inc. ROAD and Toll Brothers, Inc. TOL.
Installed Building currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
IBP delivered a trailing four-quarter earnings surprise of 5.5%, on average. Shares of the company have risen 38.4% in the past year. The Zacks Consensus Estimate for IBP’s 2023 sales and earnings per share (EPS) indicates growth of 4.7% and 8.6%, respectively, from the previous year’s reported levels.
Construction Partners currently sports a Zacks Rank of 1. ROAD delivered a trailing four-quarter earnings surprise of 10.6%, on average. Shares of the company have gained 33.4% in the past year.
The Zacks Consensus Estimate for ROAD’s fiscal 2024 sales and EPS indicates growth of 14.6% and 47.1%, respectively, from the previous year’s reported levels.
Toll Brothers currently sports a Zacks Rank of 1. TOL delivered a trailing four-quarter earnings surprise of 31.4%, on average. Shares of the company have surged 66.3% in the past year.
The Zacks Consensus Estimate for TOL’s fiscal 2024 sales and EPS indicates growth of 4% and 1.5%, respectively, from the previous year’s reported levels.
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