Dallas, Texas 06/25/2015 (Financialstrend) – KB Home (NYSE:KBH) is riding high on the upside in the housing industry in recent months. The share prices of the company climbed higher as another home building company Lennar Corporation (NYSE:LEN) reported strong earnings for the second quarter. Revenues reported by Lennar Corp were $2.4 billion with an EPS of $0.79, beating estimates of $0.64 per share and $2.02 billion revenue.
Analysts are recommending KBH as a good ‘buy’ for investors looking to invest in the housing sector. The reasons for backing KB Home are several. The first reason is the company’s higher than industry average revenue growth at 7.7%. Secondly, KB Home has reported an increase in the Return on Equity as compared to its last year’s return. Therefore, the significance of strength the company is able to project due to this factor, works in its favor over other peers in the same sector.
Analysts consider KB Home (NYSE:KBH) Home has a higher return on equity in the Household Durables industry as well as the industry itself. Currently, its RoE is considered higher than the S&P 500 average.
As a leading home industry stock, that holds immense potential, KB Home (NYSE:KBH) saw many equity research reiterating their rating of this housing sector stock.
The latest to attest it ‘neutral’ rating of the firm was Sterne Agee CRT, on Wednesday. The analyst firm has a price target of $16.00 per stock for KB home.
Many of the rating reiterations come, following the June 19, 2015 quarterly earnings report by KB Home (NYSE:KBH). In its report the company showed EPS of $0.10 for the quarter, higher than expectations of the industry. The revenue reported by KB Home was $623.00 million, 10.3% higher over previous year comparisons. Consensus rating for the housing sector stock is ‘hold’ and average price target is $17.16 per share.