#2 - KB Home (NYSE:KBH)
Many economists are drawing the conclusion that student loan debt forgiveness will disproportionately benefit higher income earners. If that’s true, then those buyers may want their first home to be a new construction. There is evidence that this is happening regardless of debt forgiveness. And that’s why KB Home (NYSE:KBH) is another stock we’ve put on our list.
KB Homes targets the first-time buyer with affordable, entry-level homes. But more than that, the company is also committed to putting solar panels on its new homes. And according to Deloitte, two-thirds of millennials are interested in having solar panels on their homes. This fits in with an overall trend that millennials have towards homes that are smart, sustainable, and energy efficient.
Keep in mind that the home building sector is currently being affected by supply chain disruption as well as a higher cost for building materials. That could be one reason that the consensus among analysts is that the stock is slightly overpriced. And the Relative Strength Indicator (RSI) for KBH is showing that the stock may be approaching an overbought level.
However, KB Home reports earnings in late March which may represent a buying opportunity.
About KB Home
KB Home operates as a homebuilding company in the United States. It operates through four segments: West Coast, Southwest, Central, and Southeast. It builds and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, first move-up, second move-up, and active adult homebuyers.
Read More - Current Price
- $70.60
- Consensus Rating
- Hold
- Ratings Breakdown
- 5 Buy Ratings, 6 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $66.30 (6.1% Downside)
