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KB Home Ups Community Count with Seminole Groves Homes

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Leading U.S. homebuilding company KB HomeKBH has recently opened a new community called Seminole Groves in Seminole, FL. Seminole Groves will offer homes priced in the low $300,000s.

Seminole Groves is a private gated community with 53 single-family homes. These homes accommodate up to six bedrooms, and three-and-a-half bathrooms. Homebuyers will enjoy proximity to downtown St. Petersburg and throughout Pinellas County via Seminole Boulevard, Gandy Boulevard, U.S. 19 and Interstate 275. Homebuyers will also get easy access to recreational spots at Gulf beaches, Treasure Island and other tourist attractions. All homes incorporate energy-efficient features to help residents save on their utility bills.

The latest development is in line with KB Home's strategy to increase community count. Through the first half of 2015, the company has focused on expanding its community count, and increasing its orders and backlogs. Going forward, from the third quarter of 2015, the company started converting its backlogs into deliveries and revenues, higher margins, and larger economies of scale. As a result, it expects significant year-over-year earnings growth through this period.

The housing market

is expected to witness a slow but steady recovery over several years driven by higher employment, a recovering economy, moderating home price gains, affordable interest/mortgage rates, rising rentals and a limited supply of inventory. KB Home is expected to have a better position to meet the increase in demand in the housing market given its higher community count.

KB Home carries a Zacks Rank #3 (Hold).

Stocks to Consider

Investors interested in the construction sector can consider Gibraltar Industries, Inc. ROCK , DR Horton Inc. DHI and Lennar Corporation LEN . While Gibraltar Industries sports a Zacks Rank #1 (Strong Buy), Lennar Corporation and DR Horton hold a Zacks Rank #2 (Buy).

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LENNAR CORP -A (LEN): Free Stock Analysis Report

KB HOME (KBH): Free Stock Analysis Report

D R HORTON INC (DHI): Free Stock Analysis Report

GIBRALTAR INDUS (ROCK): Free Stock Analysis Report

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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.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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