The Zacks Analyst Blog Highlights: Lennar, KB Home, D.R. Horton, NVR and Eagle Materials

For Immediate Release

Chicago, IL – January 24, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Lennar Corporation (NYSE: LEN - Free Report ), KB Home (NYSE: KBH - Free Report ), D.R. Horton Inc. (NYSE: DHI - Free Report ), NVR, Inc. (NYSE: NVR - Free Report ) and Eagle Materials Inc. (NYSE: EXP - Free Report ).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .

Here are highlights from Monday’s Analyst Blog:

Construction Stocks Earnings Roster for January 24

As investors gear up for the Q4 earnings season, let’s take a look at the overall housing industry. Since the beginning of 2016, construction, one of the 16 broad Zacks sectors, has been looking up with spending surpassing a 10-year high in Nov 2016.

Notwithstanding higher mortgage rates, the construction sector seems to have recovered on the back of strong housing fundamentals. Of the construction companies in the S&P 500 cohort, 15.4% have already reported their Q4 results. According to the Zacks Earnings Preview report, 50% of the companies have surpassed earnings as well as revenue expectations. Total earnings at these construction companies increased 11.9% on 14.8% higher revenues.

The recently released housing data for Dec 2016 has been a mixed bag. Housing starts rebounded in December with monthly volatility for multifamily starts continuing. Total starts were up 11.3% month over month. However, single-family housing starts, which account for the largest share of the residential housing market, posted a monthly decline (down by 4%) in December. That said, it is the fourth strongest monthly pace since the end of recession. On a year-over-year basis, housing starts rose 5.7%.

On considering full-year 2016, single-family construction improved 9.3% over the 2015 level of starts and housing starts rose 4.9%.

Again, building permits, which indicate future construction trends, dropped 0.2% in December month-over-month. The multi-family segment declined 10.1%, which was partly offset by a 4.7% rise in the single-family segment and a 2.7% increase in structures. On a year-over-year basis, building permits went up 0.7%.

As the U.S. homebuilding market staged a striking comeback in December, it is likely that the housing market may have contributed to economic growth in the fourth quarter. Positives like a healthier economy, improving employment levels, positive consumer confidence and a tight supply situation raise optimism about the sector’s performance in 2017. Further, a strong home remodeling market along with strong job data and rising consumer confidence are doing the tricks for these stocks.

So far, some of the leading homebuilding companies have reported their Q4 results. Lennar Corporation (NYSE: LEN - Free Report ) beat expectations on both the counts for the fourth time in a row in the fiscal fourth quarter of 2016 . KB Home (NYSE: KBH - Free Report ) reported its fourth-quarter numbers wherein earnings surpassed analysts’ expectations by 8.1% and revenues by 2%.

Let us take a look at how these three construction companies are placed ahead of their earnings release on Jan 24.

D.R. Horton Inc. (NYSE: DHI - Free Report ), one of the top builders in the U.S., is scheduled to report first-quarter fiscal 2017 results, before the opening bell.

Last quarter, the company posted a negative earnings surprise of 2.60%. Currently, the company has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%. Our proven model does not conclusively show that D.R. Horton is likely to beat on earnings this quarter.

For the fiscal first quarter, the Zacks Consensus Estimate for earnings is pegged at 47 cents, up 12.9% year over year. Meanwhile, the consensus estimate for revenues is $2.71 billion, implying a 12.3% increase.

As revealed during the fourth quarter of fiscal 2016 earnings call, D.R. Horton expects that its number of homes closed will approximate the beginning backlog conversion rate in the range of 76% to 80% in the to-be reported quarter.

Again, it anticipates first-quarter home sales gross margin at around 20%, slightly higher than 19.9% recorded a year ago. The company’s order trend remained solid over the past few quarters and is expected to be maintained in the soon-to-be reported quarter as well.

Overall, D.R. Horton continues to maintain a positive outlook with revenues and profits expected to increase double digits in fiscal 2017 annually.

NVR, Inc. (NYSE: NVR - Free Report ) is scheduled to release its fourth-quarter 2016 results.

Last quarter, NVR posted a negative surprise of 6.60%. The company has surpassed estimates in two of the past four quarters and has an average negative surprise of 0.16%. Estimates for 2016 and 2017 have remained stable prior to the company's fourth-quarter 2016 earnings release.

It has a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. Our proven model does not conclusively show that NVR is likely to beat earnings this quarter. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter .

The Zacks Consensus Estimate for the quarter is pegged at 33.39 cents, up 4.6% year over year. The consensus for revenues is at $1.69 billion, implying 10.7% year-over-year growth.

Eagle Materials Inc. (NYSE: EXP - Free Report ) is slated to report third-quarter fiscal 2017 numbers before the opening bell.

Last quarter, Eagle Materials posted a negative earnings surprise of 1.57%. The company currently holds a Zacks Rank #3 and an Earnings ESP of -6.09%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here . Our proven model does not conclusively show an earnings beat for Eagle Materials this quarter.

For the third quarter, the Zacks Consensus Estimate for earnings is pegged at $1.15 a share, reflecting an increase of 25.4% year over year, while the consensus for revenues is at $306.5 million, implying 10.5% year-over-year growth.

Looking for Ideas with Even Greater Upside?

Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today .

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros .

Get the full Report on LEN - FREE

Get the full Report on KBH - FREE

Get the full Report on DHI - FREE

Get the full Report on NVR - FREE

Get the full Report on EXP - FREE

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Lennar Corporation (LEN): Free Stock Analysis Report
 
KB Home (KBH): Free Stock Analysis Report
 
D.R. Horton, Inc. (DHI): Free Stock Analysis Report
 
NVR, Inc. (NVR): Free Stock Analysis Report
 
Eagle Materials Inc (EXP): Free Stock Analysis Report
 
To read this article on Zacks.com click here.