Century Communities (CCS) Continues Expansion Spree in Florida
Century Communities (CCS) enters into the North Florida region via three new communities in the area.
Century Complete, a Century Communities, Inc. CCS brand, has expanded its footprint in Florida with three new communities in the cities of High Springs, Lake City and Live Oak in the Gainesville market.
Shares of this homebuilder gained 1.3% in the after-hours trading session on Dec 16, 2021.
Century Complete occupies the leading position in the online homebuying market in the country. This brand will bring its streamlined and modernized "Buy Now" process to the above-mentioned three new communities in the area. This will enable buyers to buy a quality new home online effortlessly amid this pandemic situation.
Century Complete: Major Growth Driver
The company is optimistic about its online homebuying brand and expects Century Complete, which is 100% entry-level focused, to be the primary driver of organic growth in 2022 and beyond.
Century Complete acquires only finished lots and hence needs limited capital investment in new markets, thereby yielding quicker asset returns and higher returns on investment. Century Complete has been able to organically expand into new markets including Jacksonville, Gainesville, and the Panhandle in Florida, Louisville Kentucky, College Station, and Dallas-Fort Worth, Texas as well as Northwest Indiana over the past year. The company expects steady deliveries from all these markets in 2022.
During the first nine months of 2021, the company delivered 2,571 homes under the Century Complete brand with an average selling price or ASP of $207,000. Precisely, during third-quarter 2021, backlog for Century Complete doubled to 1,925, while net new contracts for Century Complete (as a percentage of total company contracts) improved to 39% from 32% a year ago.
Share Price Performance
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Shares of the company have gained 77.1% year to date, outperforming the Zacks Building Products - Home Builders industry’s 34.7% rise. Demand for its affordable new homes, driven by favorable demographics, tight resale supply, and low-interest rates, while underscoring the strength of its competitive positioning and national footprint across high-growth markets has been driving Century Communities’ growth.
The company currently carries a Zacks Rank #3 (Hold) and has an expected earnings growth rate of 123% for 2021. The Zacks Consensus Estimate for its 2021 earnings has moved up 7.9% over the past 60 days. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some Better-Ranked Stocks From the Same Industry
Beazer Homes USA, Inc. BZH currently sports a Zacks Rank #1. This Atlanta-based homebuilder continues to gain from strong operational execution and continued strength of the housing market.
Beazer Homes has gained 44.6% year to date (YTD). Earnings are expected to grow 23.7% in fiscal 2022.
Meritage Homes Corporation MTH currently sports a Zacks Rank #1. Based in Scottsdale, AZ, Meritage Homes is one of the leading designers and builders of single-family homes. Its focus on entry-level LiVE.NOW homes has been a major driving factor.
Meritage Homes has gained 40.1% YTD. Earnings are expected to grow 74.4% in 2021 and 22.2% in the next.
TRI Pointe Group Inc. TPH currently carries a Zacks Rank #1. This Irvine, CA-based homebuilder designs, constructs, and sells single-family detached and attached homes in the United States. Robust demand and pricing as well as improved operating leverage have been driving TRI Pointe's performance. Cost-cutting initiatives implemented earlier this year and focus on entry-level buyers have been adding to the positives.
TRI Pointe has gained 53.2% YTD. Earnings for 2021 and 2022 are expected to grow 80.2% and 9.6%, respectively.
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