Shares of homebuilders such as Lennar (LEN), Pulte Group (PHM), D.R. Horton (DHI) and Taylor Morrison (TMHC) rose Thursday on stronger-than-expected February new-home sales. KB Home (KBH) reported an unexpected earnings gain after the closing bell.
New-home sales shot up 6.1% to an annual rate of 592,000, the Commerce Department said. That's a seven-month high and well above views for a 565,000. The supply of new homes fell to 5.4 months' worth from 5.6 months. The median new-home price sank 4.9% vs. a year earlier.
After the market close, KB Home reported fiscal first-quarter earnings of 15 cents a share, up from 14 cents a year earlier. Analysts had expected 13 cents. Revenue rose 21% to $818.6 million, above forecasts for $802.79 million.
Net orders rose 14% to 2,580 homes, with the order value up 32% to $1.09 billion.
KB Home rose more than 1% to 19.60 in after-hours trading. KB Home shares closed up 1.1% to 19.32, extended from recent breakouts.
On Tuesday, Lennar reported better-than-expected earnings and accelerating sales growth. On Wednesday, existing-home sales fell more than expected, but from January's 10-year best.
Homebuilder stocks had fallen through Wednesday after rallying strongly last week on the Federal Reserve's decision not to speed up rate hikes. That stay-the-course move has pushed Treasury yields lower.
Lennar rose 0.3% to 50.85 on the stock market today, off session highs. Pulte Group climbed 0.2% to 23.42. Both are extended from recent breakouts.
D.R. Horton advanced 0.85% to 33.26. The stock is in a cup base with a potential buy point of 34.66. But it's forming a handle that, after today, would set a 34.15 entry.
Taylor Morrison rose 1.7% to 21.20, just closing back above a 21.14 buy point. The builder broke out last week, but fell 4.6% on Wednesday as sold shares to buy out private equity owners of various partnership units and class B stock.
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