KB Home (KBH) recently unveiled a community in Aurora, CO called Ponderosa Ridge.
Built in the Denver-area neighborhood, the Ponderosa Ridge community will offer easy access to retail destinations, employment centers and other recreational attractions. People opting for homes at the Ponderosa Ridge community can choose from two floor plans, namely The Reserve and The Estates.
The Reserve features nine one- and two-story single-family designs that can accommodate up to five bedrooms, two and a half baths and three-car garages. The home buyers will be offered ample living space, spacious kitchens, grand loft spaces and large master bedrooms. Price of The Reserve homes start from mid $300,000s.
Meanwhile, The Estates offers a collection of 14 floor plans for one- and two-story single-family homes. The floor plans can accommodate up to six bedrooms, two baths and three-car garages. Price of The Estates homes start in the low $400,000s.
This opening of new communities is in line with the company’s strategy to increase community count. However, fewer-than-expected home deliveries, higher construction cost, and weaker margins have resulted in sluggish earnings for the past few quarters.
Recently, the company posted fourth quarter results wherein adjusted earnings of 27 cents per share missed the Zacks Consensus Estimate by a significant 48% and declined 12.9% year over year. Earnings were weak as fewer-than-expected home deliveries hurt gross margin during the quarter. Margins were also affected by higher incentives in the quarter.
KB Home carries a Zacks Rank #5 (Strong Sell).
Other Stocks to Consider
Better-ranked stocks in the building/construction industry worth considering include Headwaters Inc. (HW), USG Corp. (USG) and TRI Pointe Homes, Inc. (TPH). All three companies sport a Zacks Rank #1 (Strong Buy).
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