Why KB Home Shares Jumped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of KB Home were looking welcoming to investors today, jumping 9% after the homebuilder reported a spike new home orders.
So what: New home orders have jumped 54% so far in its quarter, well ahead of estimates, and the company received an upgrade from Raymond James as a result. KB also said it was planning a secondary offering of as much as $115 million and would issue $172 in convertible notes, proceeds of which are expected to fund land acquisition and development. Selling prices for KB's homes have also increased recently.
Now what: Homebuilder stocks were especially strong in 2012 as the housing market finally began to recover, and 2013 looks like it could be equally bullish, with housing indicators continuing to move upward. Several homebuilders report earnings next week, and I'd expect to see similar upside surprises. Keep an eye on KB by adding the stock to your Watchlist here.
The article Why KB Home Shares Jumped originally appeared on Fool.com.Fool contributor Jeremy Bowman and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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