Today’s Research Reports on Stocks to Watch: KB Home and Toll Brothers, Inc.
Shares of KB Home saw a big gain on Thursday and even hit a new 52-week high after announcing encouraging fourth quarter results. Shares of Toll Brothers also moved higher after it was revealed that Edge-on Hudson has chosen the company to build a waterfront development.
RDI Initiates Coverage on:
Toll Brothers, Inc.
KB Home shares closed up 12.31% on about 13.2 million shares traded on Thursday. The stock also soared to a new high of $38.80 during intra-day trading. Trading volume at over 13 million shares was colossal compared to the average of just around 2.1 million shares traded. The California-based home builder reported strong gains for its last quarter. For the full year 2017, revenue at $4.37 billion was a jump of 22%. Yielding profits at $1.85 a share was up from $1.12 in the 2016 fiscal year. Revenue of the 4Q17 increased by 18% to $1.4bn. The company’s expenses also saw improvement by dropping 50 basis points to 8.7% of housing revenues in the 4th quarter of 2017. Higher revenue and effective expense controls resulted in gross profit margin on housing increasing by 160 basis points to 18.6% in the 4th quarter. According to company CEO Jeffrey Mezger, the economy’s strength should drive housing demand this year. He stated, "[W]e expect conditions will remain favorable in most of our served markets."
Access RDI’s KB Home Research Report at:
Toll Brothers, Inc. shares closed up 2.61% on about 2.1 million shares traded yesterday. The company was selected by Edge-on Hudson to be a builder for a waterfront development in Sleepy Hollow. Toll Brothers has signed an agreement to purchase and build out lots in Phase 1 of the project. It is anticipated that the company will build as many as 306 units of housing, including 61 affordable workforce and senior housing units. Edge-on is a joint venture of SunCal and Diversified Realty Advisors. David Soyka, Senior Vice President, SunCal, commented, "Toll Brothers is the ideal builder for a project that demands world-class design and construction expertise. Edge-on-Hudson will be a premier transit-oriented, waterfront community poised at the gateway to the Hudson Valley." Jonathan Stein, the founding partner of Diversified Realty Advisors, also said, "After an 18-year journey, I’m thrilled to see this project reach fruition. It will be gratifying to see the first residents move in to this extraordinary location along the Hudson
Access RDI’s Toll Brothers, Inc. Research Report at:
Our Actionable Research on KB Home (NYSE: KBH) and Toll Brothers, Inc. (NYSE: TOL) can be downloaded free of charge at Research Driven Investing.
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