Latest news with #KBHome
Yahoo
5 hours ago
- Business
- Yahoo
1 Safe-and-Steady Stock with Exciting Potential and 2 to Question
Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies. Finding the right balance between safety and returns isn't easy, which is why StockStory is here to help. That said, here is one low-volatility stock that could offer consistent gains and two stuck in limbo. Rolling One-Year Beta: 0.77 Started on a kitchen table in Utah, Nature's Sunshine (NASDAQ:NATR) manufactures and sells nutritional and personal care products. Why Are We Cautious About NATR? Flat sales over the last three years suggest it must innovate and find new ways to grow Modest revenue base of $456.6 million gives it less fixed cost leverage and fewer distribution channels than larger companies Earnings per share fell by 20.6% annually over the last three years while its revenue was flat, showing each sale was less profitable Nature's Sunshine's stock price of $14.13 implies a valuation ratio of 18.5x forward P/E. Dive into our free research report to see why there are better opportunities than NATR. Rolling One-Year Beta: 0.45 The first homebuilder to be listed on the NYSE, KB Home (NYSE:KB) is a homebuilding company targeting the first-time home buyer and move-up buyer markets. Why Do We Avoid KBH? Backlog has dropped by 22.9% on average over the past two years, suggesting it's losing orders as competition picks up Earnings per share have dipped by 5.3% annually over the past two years, which is concerning because stock prices follow EPS over the long term Free cash flow margin dropped by 5.5 percentage points over the last five years, implying the company became more capital intensive as competition picked up At $52.29 per share, KB Home trades at 6.6x forward P/E. Read our free research report to see why you should think twice about including KBH in your portfolio, it's free. Rolling One-Year Beta: 0.32 With over 100 million people served across its various businesses and a workforce of more than 400,000, UnitedHealth Group (NYSE:UNH) operates a health insurance business and Optum, a healthcare services division that provides everything from pharmacy benefits to primary care. Why Is UNH a Top Pick? Massive revenue base of $410.1 billion gives it meaningful leverage when negotiating reimbursement rates Share buybacks catapulted its annual earnings per share growth to 13.1%, which outperformed its revenue gains over the last five years ROIC punches in at 21.6%, illustrating management's expertise in identifying profitable investments UnitedHealth is trading at $300.85 per share, or 9.7x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Forbes
2 days ago
- Business
- Forbes
Wildfire Prepared Neighborhood Offers Resilience, Insurance Benefits
The nation's first Wildfire Prepared Neighborhood is located in Escondido, California, a suburb of ... More San Diego. A great kitchen! Great schools! Great location! These have all been highly sought-after attributes by prospective homebuyers for decades. Fire resilience? That attribute is new, sparked by recent wildfires across the country – especially the devastating blazes in Los Angeles this past January – and insurance companies cancelling policies for high risk regions. A new Wildfire Prepared Neighborhood program from the Insurance Institute for Business & Home Safety, building on its successful Wildfire Prepared Home program, is betting that fire resilience will be an important new attribute for home buyers. The nation'sfirst certified community, KB Home's Dixon Trail, is located in Escondido, California, a suburb 45 miles northeast of San Diego. The latest 2025 Cal Fire map puts the upscale 64-home single family development in a high risk zone. So it's not surprising that the first feature mentioned on the Dixon Trail website is 'Wildfire Prepared Neighborhood.' 'We view this as an important research and development project to better understand the benefits,' shares Steve Ruffner, KB Home Coastal's regional general manager. Dixon Trail will serve as a model for the company's wildfire mitigation efforts, he added. Ruffner's team saw a demonstration of the WPH fire resilience features at a 2024 conference, which led to conversations about bringing those attributes to an entire KB Home community. Dixon Trail had just broken ground at the time, 'so timing and location made it an ideal choice for this pilot program,' he notes. The certified neighborhood program had just been finalized, so that Dixon Trail was the first community building to that standard, notes an IBHS spokesperson. 'What we see in Escondido at the Dixon Trail development with KB Home is what we need to see replicated across the West. When new construction is occurring, we need to build homes that are survivable and insurable. Wildfire Prepared Home and Wildfire Prepared Neighborhood are exactly the pathway to those ends,' declares Roy Wright, IBHS' CEO. The trade organization is getting inquiries from other builders and developers to potentially get their neighborhoods certified. How does a development qualify as a Wildfire Prepared Neighborhood? Only homes in California and Oregon are currently eligible for the designation, though other states will be added soon, an IBHS spokesperson says. All homes must be spaced a minimum of 10 feet apart, have a Class A roof, have a homeowners association and build each residence to Wildfire Prepared Home standards. (Depending on the neighborhood's location, it will require Plus or Basic levels for the individual homes.) 'KB Homes worked closely with IBHS to pre-designate the homes in that community based on the model designs and landscaping,' notes Ivan O'Neill, a Sonoma County-based WPH certification reviewer and wildland firefighter. 'Once homeowners purchase the home, they will be required in the HOA CC&Rs to get the designation, and it's all set up for them to create an account and get it done,' O'Neill explains. These are the criteria for getting Wildfire Prepared Home certified to Basic or Plus levels. In addition to the peace of mind in having a home built to greater fire resilience than most resale homes and a community planned on that basis, there are insurance benefits for WPH owners in California. The state mandates discounts for specific fire resilience features and requires carriers in the state to advise homeowners of their property's wildfire risk score. 'To drive forward wildfire safety, the Department of Insurance created the nation's first insurance discount program for mitigation actions called Safer from Wildfires,' comments CDI's deputy insurance commissioner Michael Stoller. WPH mirrors the state program's criteria in many important ways, he notes, though it is separate. Insurance companies can provide added discounts beyond the state's requirements, he says. Some of them are doing exactly that for the IBHS programs. State Farm provides the state required discounts, and an additional discount for both WPH levels, a spokesperson shares. 'Depending on the combination of discounts a customer qualifies for, the total maximum wildfire mitigation discount a customer can receive for their homeowners policy in California is between 6.3% and 10.1%.' 'Generally, Farmers customers in California are eligible for discounts of up to 8% on their wildfire peril premium, depending on the number and types of risk mitigation measures implemented and the characteristics of the property. An inspection arranged through the Insurance Institute for Business and Home Safety (IBHS) is one way that customers may validate the specific measures which have been successfully implemented and may qualify for a discount,' notes a spokesperson from that carrier. 'We've proposed discounts of up to 39% for IBHS Wildfire Prepared Home Plus (applies only to the wildfire peril premium) in our pending rate filing with the California Department of Insurance,' comments an executive with Mercury Insurance. 'We don't know when that will be approved, however, so there is no timeline of when these will be available to Mercury customers and California consumers.' Another challenge for California homeowners is policy cancellations. Thousands occurred in 2024, just months before the devastating LA fires. These impacted both individual owners and their homeowner associations. Many scrambled to find new coverage, often with much higher premiums and deductibles. Mercury also notes, 'Homes that have been certified as a Wildfire Prepared Home or Wildfire Prepared Home Plus are excellent risks and it's highly likely that Mercury would renew these customers. Other factors are also considered when offering renewals, but we believe homes that achieve these designations are significantly better wildfire risks and would therefore be much more likely to be renewed.' 'I think this is the future of most (or all) new housing developments in California that are located on the outskirts of existing communities,' O'Neill predicts. The cost difference is minimal when planned ahead, he points out. 'Developers need to follow KB Homes' lead and build to the WPH Plus level standard from the beginning and ensure that their future homebuyers will have access to more insurance options.' ***Note: All interviews were conducted by email in May 2025.
Yahoo
3 days ago
- Business
- Yahoo
Homeownership Aspirations Remain Strong as Americans Highlight an Opportunity for More Support
KB Home unveils findings from its second annual survey and expands its mission to educate and empower future homebuyers during National Homeownership Month and beyond. LOS ANGELES, June 02, 2025--(BUSINESS WIRE)--KB Home (NYSE: KBH), one of the largest and most trusted homebuilders in the U.S., today announced the findings of its second annual survey, which the company conducted to gauge Americans' sentiments about homeownership and support their homebuying aspirations. New data released found that most Americans still believe that homeownership is an important milestone (83%), but an even greater number feel anxious (89%) about affordability and the homebuying process. June is National Homeownership Month, a time dedicated to recognizing the importance of owning a home and the opportunities it can create for individuals and families. To mark the occasion, KB Home is sharing survey insights and hosting Homebuying 101 events across the country focused on helping more people feel informed and empowered in their homebuying journey. During these free, in-person workshops, KB Home experts will cover topics like the benefits of owning versus renting, the advantages of new construction and how to navigate the homebuying process, including the financing of a new home. "This year's survey shows that the dream of owning a home is still very real, even if many people are unsure how to get there," said Rob McGibney, President and Chief Operating Officer of KB Home. "At KB Home, we're helping to bridge that gap by offering new, high-quality homes that are affordably priced and personalized to fit each buyer's lifestyle. These are the things Americans tell us they value most, and delivering on them is part of our commitment to making homeownership more attainable for more people." The national survey was conducted in April 2025 by The Harris Poll. Here is what Americans had to say: Americans Still Aspire to Own a Home and Are Clear About What Matters Life milestone. A vast majority (83%) said that owning a home was an essential milestone in life. This perception remains unchanged from 2024. Good feelings. People ranked excitement (47%), pride (43%) and motivation (28%) as their top three positive emotions associated with homebuying. A better life. Some of the top reasons for wanting to own a home included safety and security (47%), more living space (47%), access to a backyard or outdoors (43%), to avoid rent increases and other fees (42%), and long-term financial betterment (41%). Modern features matter. Almost four out of five Americans said that if they had a set budget and had to make a trade-off, they would not be willing to sacrifice: a limited home warranty (87%), lower energy and water utility bills (86%), a modern floor plan (83%) or the opportunity to personalize their home (78%). Lifestyle adjustments. Most buyers (74%) were willing to make lifestyle sacrifices, such as living at home with their parents a while longer or eating out less, in order to afford a home that they want. Affordability Is a Real Concern — and So Is Knowing When and How to Buy Buyer anxieties. Most (89%) reported anxieties with buying a home, and this was even higher among current renters (93%). About a quarter of Americans report being nervous (27%) and stressed (24%) among their top three negative emotions associated with buying. Stress drivers. When asked what made them feel anxious about buying a home, Americans were most worried about being able to afford a home (44%), taking on more debt (41%) and buying a money pit that needs repairs/renovations (30%). Right time, right place. Over a quarter (28%) were anxious about whether now is a good time to buy and 23% were anxious about settling for a home they didn't love and having buyer's remorse. Financial pressure points. When it comes to financial anxieties, Americans most commonly ranked among the top three: having enough money for a down payment (45%), knowing how much they can afford (43%), being able to make monthly payments (42%) and finding the best mortgage rate (42%). Today's challenges. Over half (54%) believed that they are in a worse position to buy a home today than prospective buyers of prior generations. The top three most common challenges that people said homebuyers face today that their parents' generation didn't have to face were higher home prices (46%), high mortgage rates (38%) and uncertain economic conditions (36%). The Need for Education Is Clear Mortgage myths. About seven in ten adults (69%) believed that mortgage rates are at an all-time high or were not sure. In reality, mortgage rates were highest in 1981, when the 30-year fixed rate peaked at 18.6%, far higher than today. The recent average 30-year fixed mortgage rate of 6.8% is lower than the average rate across the last 50 years of 7.7%. Terminology test. Nearly half didn't know or were unsure about the meaning of terms like APR (44%) or PMI (49%). Financing facts. Fewer than two in five knew certain key facts about financing a home, including that a minimum down payment of 20% is not required (37% correct) and that one can qualify for a mortgage with a credit score in the 500s (25% correct). Advice needed. About a quarter of Gen Zers (25%) and Millennials (23%) said that they felt anxious about not knowing where to start when it comes to the homebuying process. About one in five Gen Zers (20%) and Millennials (18%) said that not having a trustworthy resource for homebuying advice made them feel anxious. "At KB Home, helping our customers achieve their lifelong dream of buying a home — the largest purchase many people ever make — is a privilege that we take seriously," said McGibney. "Whether it's selecting the perfect floor plan, understanding financing options or choosing design features, our goal is to guide buyers through the journey with confidence. This year's survey reinforces just how important that support is, especially when so many are feeling uncertain about the homebuying process." To learn more about how KB Home is supporting homebuyers during National Homeownership Month and beyond and to find a nearby Homebuying 101 event, visit For more information on KB Home, call 888-KB-HOMES or visit About KB Home KB Home is one of the largest and most trusted homebuilders in the U.S. We operate in 49 markets, have built nearly 700,000 quality homes in our more than 65-year history, and are honored to be the #1 customer-ranked national homebuilder based on third-party buyer surveys. What sets KB Home apart is our focus on building strong, personal relationships with every customer and creating an exceptional experience that offers our homebuyers the ability to personalize their home based on what they value at a price they can afford. As the industry leader in sustainability, KB Home has achieved one of the highest residential energy-efficiency ratings and delivered more ENERGY STAR® certified homes than any other builder, helping to lower the total cost of homeownership. For more information, visit About the Survey This survey was conducted online within the U.S., April 1–3, 2025, among 2,081 adults (aged 18 and over) by The Harris Poll on behalf of KB Home via its Harris On Demand omnibus product. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/-2.5 percentage points using a 95% confidence level. Complete survey methodology, including weighting variables and subgroup sample sizes, is available upon request. View source version on Contacts For Further Information: Cara Kane321-299-6844kbhomepr@
Yahoo
7 days ago
- Business
- Yahoo
KB Home (KBH) Laps the Stock Market: Here's Why
KB Home (KBH) closed the latest trading day at $51.78, indicating a +0.68% change from the previous session's end. This change outpaced the S&P 500's 0.4% gain on the day. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, added 0.39%. Coming into today, shares of the homebuilder had lost 4.81% in the past month. In that same time, the Construction sector gained 7.66%, while the S&P 500 gained 6.69%. Investors will be eagerly watching for the performance of KB Home in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.45, marking a 32.56% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.5 billion, down 12.55% from the prior-year quarter. For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.05 per share and a revenue of $6.64 billion, signifying shifts of -16.57% and -4.11%, respectively, from the last year. Investors should also take note of any recent adjustments to analyst estimates for KB Home. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 4.11% downward. KB Home is currently a Zacks Rank #4 (Sell). Looking at its valuation, KB Home is holding a Forward P/E ratio of 7.29. Its industry sports an average Forward P/E of 9.27, so one might conclude that KB Home is trading at a discount comparatively. Also, we should mention that KBH has a PEG ratio of 2.33. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Building Products - Home Builders industry had an average PEG ratio of 1.71 as trading concluded yesterday. The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 225, positioning it in the bottom 9% of all 250+ industries. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KB Home (KBH) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Fast Company
28-05-2025
- Business
- Fast Company
Homebuilder unsold inventory swells to 2009 levels: Housing markets to watch
Want more housing market stories from Lance Lambert's ResiClub in your inbox? Subscribe to the ResiClub newsletter. Last month, in an address to investors, D.R. Horton CEO Paul Romanowski said the spring 2025 selling season is getting off to a slower-than-usual start for the nation's largest homebuilder. 'This year's spring selling season started slower than expected as potential homebuyers have been more cautious due to continued affordability constraints and declining consumer confidence,' Romanowski said on the company's earnings call. It isn't just D.R. Horton. Subscribe to the Daily newsletter. Fast Company's trending stories delivered to you every day Privacy Policy | Fast Company Newsletters 'Demand at the start of this spring's selling season was more muted than what we have seen historically, despite a healthy level of traffic in our communities,' wrote Jeffrey Mezger, CEO of KB Home, in the company's Q1 2025 earnings report. 'In mid-February, we took steps to reposition our communities to offer the most compelling value, and buyers responded favorably to these adjustments.' Last quarter, Lennar spent the equivalent of 13% of home sales on buyer incentives—up from 1.5% in Q2 2022 at the height of the pandemic housing boom. A 13% incentive on a $400,000 home translates to $52,000 in incentives. This softer housing demand is causing unsold inventory to tick up. Indeed, since the pandemic housing boom fizzled out, the number of unsold completed U.S. new single-family homes has been rising: April 2018: 61,000 April 2019: 77,000 April 2020: 78,000 April 2021: 33,000 April 2022: 34,000 April 2023: 69,000 advertisement April 2024: 89,000 April 2025: 117,000 The April figure (117,000 unsold completed new homes) published last week is the highest level since July 2009 (126,000). Let's take a closer look at the data to better understand what this could mean. ResiClub's Finished Homes Supply Index puts the number of unsold completed new single-family homes into historic context. The index is one simple calculation: The number of unsold completed U.S. new single-family homes divided by the annualized rate of U.S. single-family housing starts. A higher index score indicates a softer national new construction market with greater supply slack, while a lower index score signifies a tighter new construction market with less supply slack. If you look at unsold completed single-family new builds as a share of single-family housing starts (see chart below), it still shows we've gained slack; however, it puts us closer to pre-pandemic 2019 levels than the 2007 to 2009 financial crisis. While the U.S. Census Bureau doesn't give us a greater market-by-market breakdown on these unsold new builds, we have a good idea where they are based on where total active inventory homes for sale (including existing) has spiked above pre-pandemic 2019 levels. Most of those areas are in the Sun Belt around the Gulf. Some builders are experiencing pricing pressure, particularly in major housing markets like Florida and Texas, where resale inventory remains significantly higher than pre-pandemic levels. Big picture: There's greater slack in the new-construction market now than a few years ago, giving buyers some leverage in certain markets to negotiate better deals with homebuilders.
