For Immediate Release
Chicago, IL – May 16, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include KB Home (NYSE: KBH – Free Report ), Century Communities, Inc. (NYSE: CCS – Free Report ), Taylor Morrison Home Corporation (NYSE: TMHC – Free Report ), Toll Brothers, Inc. (NYSE: TOL – Free Report ) and M/I Homes, Inc. (NYSE: MHO – Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Monday’s Analyst Blog:
5 Home Building Stocks to Buy Post-Q1 Earnings
Several home building stocks had a strong quarter with the companies surpassing earnings estimates and looking well-positioned for the remainder of the year. Over the last five years, overall revenues for this segment of the market have been on an upward trajectory after having slumped during the 2009 - 2011 timeframe.
Steady jobs, rising wages, a lending environment that provides consumers with a chance to become home owners, consumer confidence and affordability are all some of the factors that have been supporting the recovery. Meanwhile, a low supply level in both new and existing homes has ensured that demand and pricing remain strong. As the economy continues to improve and the millennial generation comes of age, pent-up demand for homes will continue to be released.
Of course, challenges do remain in the form of the proposed new tariff on Canadian soft wood lumber imports, labor constraints, as well as the prospect of rising mortgage rates.
However, the home builders industry is among the top 9% of the 256 Zacks-ranked industries. The Zacks-categorized Building-Residential/Commercial industry has outperformed the broader market (S&P 500) year-to-date (YTD) as well.
So, here is a look at 5 stocks that delivered positive earnings surprises in the first quarter and are witnessing upward revisions in earnings estimates for 2017. All these companies are either Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy) stocks -- you can see the complete list of today’s Zacks #1 Rank stocks here .
KB Home (NYSE:KBH – Free Report ): Los Angeles, CA-based KB Home is among the largest and most recognized homebuilding companies in the U.S. The company sells and builds new homes designed primarily for first-time, move-up and active adult homebuyers. KB Home’s focus is on first-time buyers, which represents the largest demand segment, and accounted for nearly 60% of the company’s deliveries over the past 10 years. The company reported better-than-expected results for the first quarter of fiscal 2017 -- in addition to delivering a positive earnings surprise of 7.14%, KB Homes raised its housing revenue guidance for the year. Gross margins are expected to improve sequentially over the course of the year. A solid backlog and a favorable market environment bode well for this Zacks Rank #1 stock. Earnings estimates for fiscal 2017 are up 3.9% over the last 60 days. Estimated earnings growth for the current year is 43.2%. YTD, KBH has outperformed the Zacks-categorized Building-Residential/Commercial industry with shares gaining 32.3% compared to the industry gain of 20.3%.
Century Communities, Inc. (NYSE:CCS – Free Report ): Greenwood Village, CO-based Century Communities works on the development, designing, construction, marketing and sale of single-family attached and detached homes in metropolitan areas in Colorado, Austin and San Antonio, Texas, Houston, Las Vegas, Nevada, Atlanta, Georgia, North Carolina and Salt Lake City, UT. The upcoming merger with UCP, Inc., slated to close by the end of the third quarter, will provide the combined company with a presence in 10 states and 17 homebuilding markets.
Century Communities has a strong earnings track record having surpassed expectations in each of the last four quarters with an average surprise of 11.23%. 2017 estimates are up 3.3% over the last 30 days. Estimated earnings growth for the current year is 20.5%. The company is a Zacks Rank #2 stock.
Century Communities has outperformed the Zacks-categorized Building-Residential/Commercial industry YTD with shares gaining 22.1%.
Taylor Morrison Home Corporation (NYSE:TMHC – Free Report ): Scottsdale, AZ-based Taylor Morrison caters to a wide array of consumer groups from coast to coast, including first-time, move-up, luxury, and 55 plus buyers. The Zacks Rank #2 stock has surpassed earnings expectations in each of the last four quarters with an average surprise of 9.46%. Estimates are up 1.6% over the last 30 days. Taylor Morrison has a VGM Score of “A”. Our research shows that stocks with a VGM Score of “A” or “B” when combined with a Zacks Rank #1 or #2 offer the best upside potential. Estimated earnings growth for the current year is 11.8%.
Toll Brothers, Inc. (NYSE:TOL – Free Report ): Horsham, PA-based Toll Brothers is focused on the highly fragmented luxury market. The company builds and sells detached and attached homes in luxury residential communities located in affluent suburban markets that cater to move-up, empty-nester, active-adult, age-qualified, and second-home buyers. The company also has a presence in the urban infill markets. Toll Brothers, a Zacks Rank #2 stock, delivered a positive earnings surprise of 20% in the last quarter while fiscal 2017 estimates are up 0.3% over the last 30 days. Estimated earnings growth for fiscal 2017 is 43.9%.
M/I Homes, Inc. (NYSE:MHO – Free Report ): Columbus, OH-based M/I Homes is among the nation’s leading builders of single-family homes. The company has a presence in Columbus and Cincinnati, OH; Indianapolis, IN; Chicago, IL; Minneapolis/St. Paul, MN; Tampa, Sarasota and Orlando, FL; Austin, Dallas/Fort Worth, Houston and San Antonio, TX; Charlotte and Raleigh, NC; and the Virginia and Maryland suburbs of Washington, DC.
The Zacks Rank #1 stock posted a positive earnings surprise of 44.74% in the last quarter while 2017 estimates are up 17.3% over the last 30 days. Estimated earnings growth for 2017 is 36.2%.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free .
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Get the full Report on KBH - FREE
Get the full Report on CCS - FREE
Get the full Report on TMHC - FREE
Get the full Report on TOL - FREE
Get the full Report on MHO - FREE
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks Investment Research
800-767-3771 ext. 9339
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.
This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
KB Home (KBH): Free Stock Analysis Report
Century Communities, Inc. (CCS): Free Stock Analysis Report
Taylor Morrison Home Corporation (TMHC): Free Stock Analysis Report
Toll Brothers Inc. (TOL): Free Stock Analysis Report
M/I Homes, Inc. (MHO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research