Big 2021 Gains in Store for This Homebuilding Powerhouse

KB Home just opened new Travisso community in California

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KB Home (NYSE:KBH) is one of the largest homebuilding companies in the United States. KBH has built over 650,000 homes since its founding, primarily for first-time home buyers. On Dec. 22, KB Home announced the grand opening of Travisso, KBH's latest single-family home community in Elk Grove, California. This afternoon, KBH was last seen up 2.3% at $45.25. 

With earnings on the not-so-distant horizon, investors should keep in mind this stock-moving event. KB Home's senior leadership team is slated to release fourth-quarter earnings on Wednesday, Jan. 12. Analysts expect that the homebuilding company will report earnings of $1.76 per share in the upcoming earnings report.

KB Home stock has increased a solid 30% in price year-over-year, and have grown 35% year-to-date. Moreover, KB Home offers a forward dividend of $0.60 with a dividend yield of 1.36%.

From a fundamental point of view, KB Home stock offers a great valuation to potential investors. KBH trades at a very attractive price-earnings ratio of 8.55 and a solid price-sales ratio of 0.80. In addition, KB Home stock has an amazing forward price-earnings ratio of 5.52.

The options pits lean pessimistic. The equity's Schaeffer's put/call open interest ratio (SOIR) of 1.32 sits in the elevated 82nd percentile of readings in its annual range. This means near-term put open interest outweighs call open interest by a wider-than-usual margin. Should this pessimism begin to unwind, short-term call traders may begin to crowd the equity.

KB Home has also maintained consistent bottom-line growth in recent years. In general, the biggest fundamental flag for KB Home stock seems to be its balance sheet, which holds $350 million in cash and $1.9 billion in total debt. Nonetheless, KBH continues to a great option for long-term value investors.

 




 
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