KB Home (KBH) recently unveiled two new communities in Chandler, AZ. The communities are called Fire Rock Ranch “The Traditions” and Fire Rock Ranch “The Villas.” KB Home plans to construct 135 single-family homes in these communities.
Homebuyers at Fire Rock Ranch “The Traditions” can choose from six one- and two-story floor plans, which accommodate up to five bedrooms, three baths and a two-car garage. Prices of homes at The Traditions start from mid $200’s.
On the other hand, the homebuyers at Fire Rock Ranch "The Villas” will be offered four two-story floor plans to choose from. Prices of homes at The Villas start from low $200’s.
Fire Rock Ranch residents will enjoy close proximity to the SanTan Village and entertainment and shopping centers due to easy access to Central Chandler. The community falls under the purview of the Chandler Unified School District. All Fire Rock Ranch homes are Energy Star certified, which will help residents save on utility bills.
The introduction of new communities is in line with the company’s strategy of increasing community count in upcoming quarters. However, we note that the company has not been performing well lately owing to several headwinds such as, shortage of buildable lots and skilled labor, rising input costs and a lack of geographic diversity. In fact, the company reported declining number of homes delivered and sequentially softer order trends in the last reported third quarter 2014.
KB Home carries a Zacks Rank #4 (Sell).
Other Stocks to Consider
Better-ranked stocks in the building/construction industry worth considering include Graña y Montero SAA (GRAM), CaesarStone Sdot-Yam Ltd. (CSTE), Headwaters Inc. (HW). All the three companies sport a Zacks Rank #1 (Strong Buy).
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