July 17, 2024

By Nigam Arora & Dr. Natasha Arora

KB Home stock (KBH) is long from $16.15.  It is trading at $81.96 as of this writing, representing a 407% gain.

Trump Enthusiasm

There is enthusiasm in home builder KBH stock.  KBH is seeing extremely aggressive buying on expectations of another Trump presidency and potential interest rate cuts.  The expectation is that Trump will hammer the Fed to cut rates quickly if he is re-elected.

Breakout

Following technical analysis, KBH stock has broken out.

Earnings

KHB reported above consensus earnings in Q2.

Note the following:

• Demand is healthy.
• Mortgage rate volatility is not tempering demand.