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The investing crowd is likely stunned given the dreary outlook many had on the homebuilding group. Big Money footprints tell the real story.
KB Home Attracts Big Money Inflows
Want an edge in trading? Follow the Big Money.
What’s Big Money? Said simply, it’s when a stock rises due to institutional demand. Our bet since last year is that KBH is under accumulation and for good reason
Fundamentally, KB Home has many qualities that are attractive. More on that in a bit.
Paying attention to how the shares trade, suggests there could be more upside.
You see, fund managers are always looking to bet on the next outperforming stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.
The YTD action tells the story. Each green bar signals unusual buying volumes, pushing the stock higher:
In 2023, the stock attracted constant Big Money buy signals. Recent green bars suggest strong demand.
Now, let’s check out the technical action grabbing my attention:
- Year-to-date outperformance vs. SPDR S&P Homebuilders ETF (+28.44% vs. XHB)
KB Home Fundamental Analysis
Next, it’s a good idea to check under the hood. I want to make sure the fundamental story is strong too. As you can see, KBH has had double-digit sales and positive earnings growth the past 3 years:
- 3-year sales growth rate (+16.4%)
- 3-year EPS growth rate (+49.5%)
Source: FactSet
Marrying great fundamentals with our proprietary Big Money software has found some big winning stocks over the long-term.
Check this out. KB Home has been a top-rated stock at MAPsignals for years. That means the stock has had buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
It’s made the rare Top 20 report numerous times since 2016. The blue bars below show when KBH was a top pick:
Tracking unusual volumes reveals the power of the MAPsignals process.
KB Home Price Prediction
The KBH rally has been in place for years and recently. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no positions in KBH at the time of publication.
If you want to take your investing to the next level, learn more about the MAPsignals process here.
Contact
https://mapsignals.com/contact/
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
