KB Homes (
) reported blowout third-quarter results Friday that blasted its
stock 17% to a 21-month high and homebuilder ETFs to multiyear
IShares Dow Jones U.S.Home Construction (
) leapt 2.23% to a four-year high of 20.69. It's been climbing
for seven weeks straight and sports the highest IBD Relative
Strength, 96, and Accumulation-Distribution, A, Ratings among all
equity ETFs. That shows it's outpacing the price performance of
96% of the market and institutions are heavily buying shares.
It has to rise 142% to recover its 2006 housing-bubble high.
It's surged 14% so far this month vs. 3.5% for the S&P
SPDR S&P Homebuilders (
) climbed 1.4% to a five-year high of 26.03. It has to rally 63%
to reach its 2006 high.
It sports 93 RS and A- Acc-Dis Ratings. It's jumped 10% so far
PowerShares Dynamic Building &Construction (
) rose 1.87% to a four-year high. The weakest among its peers, it
carries 88 RS and B+ Acc-Dis Ratings.
KB Home reported
for the third quarter:
-- Sales climbed 16% from the year-ago period to $424.5
-- Deliveries rose 7% year over year to 1,720.
-- Average selling price picked up 8% year over year, or
$17,700, to $245,100.
-- Earnings soared to 4 cents a share vs. a loss of 13 cents a
share in Q3 last year.
We reported Wednesday
how the housing market is rebounding from the housing bubble.
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