The California based homebuilder
Ryland Group Inc.
) has recently opened eight new communities in Indianapolis.
The communities are opened to the homebuyers from Jan 19 to
January 27. The houses in the communities belong to the
Americana, Architectural and Estate Collections of the company.
The houses are all well furnished with Ryland's Signature Gourmet
Kitchen consisting of granite countertops and stainless steel
appliances. Homes in the communities are priced between $130 and
$360. While homes at The Trails and The Preserve community at
South Lake are priced at $130, those at Willows in the Zionsville
featuring homes from the Estate collection will be available at
The recovery in the housing market, along with strong fiscal
third-quarter 2012 results have resulted in the rise in earnings
estimates for the company.
Ryland Group reported fiscal third-quarter (ended September 30)
results on October 24. Non-GAAP earnings per share came in at 21
cents, surpassing the Zacks Consensus Estimate by 23.5%. Earnings
grew significantly from a loss of 9 cents in the prior-year
quarter. Moreover, this well-known homebuilding and
mortgage-finance company delivered positive earnings surprises in
2 of the last 3 quarters. The long-term expected earnings growth
rate for this stock is 10.0%.
Double-digit growth in homebuilding revenues, expanded margins
and the company's cost control initiatives led to the strong
earnings performance in the quarter. The company's strong
top-line growth was driven by over 35% growth in homebuilding
revenue, number of homes closed and backlog. The company also
witnessed 11.4% year-over-year growth in the number of active
The Ryland Group believes in acquisitions to drive growth. The
company recently acquired the Phoenix, Arizona operations and
assets of Trend Homes. Previously, the company had acquired the
assets of Timberstone Homes in Charlotte and Raleigh in July
The demand for new homes is increasing owing to expensive home
rental market, affordable prices of homes, cost saving
energy-efficient features of the new homes and low mortgage
rates. More companies are investing in building new homes in
order to meet the growing housing demand, which is resulting in
declining inventory levels and inflating prices.
Currently, Ryland Group carries a Zacks Rank #2 (Buy). You can
also consider investing in
) that offer exposure to more attractive housing segments and
also carry a Zacks Rank #1 ( Strong Buy).
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RYLAND GRP INC (RYL): Free Stock Analysis
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