KB Home (KBH) Unveils Community in Las Vegas, Boosts Expansion
KB Home (KBH) on an expansion spree, opens community in the highly desirable location of Southwest Las Vegas.
In an attempt to expand its presence across the most popular city of Las Vegas, KB Home KBH recently announced the opening of Creekstone in Southwest Las Vegas.
The community will have one- and two-story single-family homes with up to five bedrooms and four baths with a 1200-2400 square feet floor area. Moreover, the community will be built per the latest ENERGY STAR guidelines, enabling homebuyers to save a reasonable amount in utility costs.
Creekstone is located close to South Decatur Boulevard, West Cactus Road near Interstate 15 and McCarran International Airport. Also, the community is easily accessible to the city’s major shopping, dining and entertainment centers.
Concerning the opening, general manager, Regional General Manager of KB Home’s Las Vegas and Seattle divisions, Brian Kunec, stated, “Creekstone provides homebuyers with a selection of beautiful new homes in tranquil Southwest Las Vegas. Our new community is situated in a prime location near Mountain’s Edge Regional Park and is a short drive to the Las Vegas Strip and the area’s major employment center.”
Continuous Community Openings Drive Performance
KB Home invests aggressively in land acquisition and development, mainly in high-end locations, thereby leading to the company’s community growth. This eventually helps the company in reducing debt. The company is optimistic that this blend of rising active inventory will boost future gross margin and returns while reducing its annual interest incurred. The company reported solid third-quarter fiscal 2021 results, with a robust backlog level and quarter-end backlog totaling 10,694 homes (as of Aug 31, 2021), up 58% from a year ago. Further, potential housing revenues from backlog grew 89% from the prior-year period to $4.84 billion.
Moreover, KB Home is optimistic that the blend of rising active inventory while reducing its annual interest incurred is expected to boost future gross margin and returns. During the third quarter of fiscal 2021, the company expanded its lot position to almost 81,000 lots owned or controlled, up from 60,278 lots reported in the year-ago period. KB Home has a strong land pipeline and thus expects its community count to be approximately 260 by 2022.
So far this year, shares of the company have surged 16.5% compared with the Zacks Building Products - Home Builders industry’s 8.9% rally. The company is benefiting from a returns-focused growth plan, a Built-to-Order approach and accretive land acquisition strategies.
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Zacks Rank & Key Picks
Currently, KB Home carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A few better-ranked stocks in the Construction Sector are M/I Homes, Inc. MHO, Loma Negra Compañía Industrial Argentina Sociedad Anónima LOMA and Landsea Homes Corporation LSEA. M/I Homes sports a Zacks Rank #1, while Loma Negra and Landsea Homes carry a Zacks Rank #2 (Buy).
M/I Homes’ earnings for 2021 are expected to grow 63.3%.
Loma Negra has a three-to-five-year earnings per share growth rate of 26.3%.
Landsea Homes has a trailing four-quarter earnings surprise of 68.3%, on average.
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