KB HOME STOCK BREAKS OUT ON GOOD EARNINGS IN THE RED HOT HOUSING MARKET

 

The housing market is red hot. The hottest housing segment is starter homes and this is exactly where KBH is focused.  KBH is long from $16.15.  It has traded at $40.94  after earnings in the aftermarket.

The Chart

Please click here for a chart of KB Homes (KBH).

Note the following:

  • Technically the stock has broken out.
  • Going into the close, the stock was running up in anticipation of good earnings.
  • Earnings were better than the consensus and whisper numbers. Stocks move based on the difference between the reported earnings and the whisper numbers.
  • In the afterhours, after the initial surge, the stock is showing some weakness.
  • RSI shows that the stock is overbought.

Zones

For those following the Good Way, the Buy Now rating has been ‘YES.’   Due to the risk of this breakout failing, the Buy Now rating is being changed to ‘NO.’

For those following the Best Way, the new buy zone is $29.07 to $34.57.

The recommended quantity is 30 – 40% of full core position size.

What To Do Now

Since there is a risk of the breakout failing, those who recently bought, have a shorter term horizon or have not booked profits on other positions, may consider either taking partial profits or raising the stops on at least partial quantity to the stop zone of $37.43 to $38.18.

For those who are holding quantities larger than the recommended position size , may consider either taking partial profits or raising the stops on partial quantity to $37.43 to $38.18.

Those holding the recommended quantity in a highly diversified portfolio may consider continuing to hold.

Those not in the stock may consider following the parameters given above.

This post was just published on ZYX Buy Change Alert.

 

A knowledgeable investor would have turned $100,000 into over $1,000,000 with the help from The Arora Report. NOW YOU TOO CAN ALSO SPECTACULARLY SUCCEED AT MEETING YOUR GOALS WITH THE HELP OF THE ARORA REPORT. You are receiving less than 2% of the content from our paid services. …TO RECEIVE REMAINING 98% INCLUDING MANY ATTRACTIVE INVESTMENT OPPORTUNITIES, TAKE A FREE TRIAL TO PAID SERVICES.

Please click here to take advantage of a FREE  30 day trial.

Check out our enviable performance in both bull and bear markets.

FREE: SUBSCRIBE TO ‘GENERATE WEALTH’ NEWSLETTER

Related Posts

NINE MODEL PORTFOLIO STOCKS ARE IN THE BUY ZONE

Signal(s) to enter, add, reduce, exit, hold or change. Nine Model Portfolio stocks are in the buy zones, one touched the ...

WEEKLY MARKET DIGEST: NVIDIA CAUSES NEGATIVE SENTIMENT, COLD WATER ON TRADE OPTIMISM $DIA $GLD $QQQ $SLV $SPY $TBT $USO

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

THESE TWO CHART PATTERNS TELL THE REAL STORY OF THE STOCK MARKET $GDX $HAL $SLB $CVX $XOM $SLW $ABX $TLRY $ACB $CGC $CRON $NFLX $AAPL

The stock market is developing two chart patterns that all prudent investors should pay attention to. Let’s explore the issue ...

INITIATE OR ADD TO HOME BUILDER KB HOME $KBH

This post was just published on ZYX Buy Change Alert. KB Home (KBH) was hit hard over the last three days on rising ...

CONGRATULATIONS, YOU MORE THAN DOUBLED YOUR MONEY IN KB HOME, GOOD EARNINGS $KBH

This post was just published on ZYX Buy Change Alert.   KB Home (KBH) stock is long from $16.15.  It just ticked at $36 in ...

TAKE PARTIAL PROFITS ON HOME BUILDER KB HOME ON THE REPUBLICAN PLAN TO LIMIT MORTGAGE DEDUCTION $KBH $TOL

This post was just published on ZYX Buy Change Alert.  KBH is long from $16.15.  As of this writing the stock is trading ...

KB HOME STOCK IS A BUYOUT TARGET, EARNINGS $KBH $AMH $INVH $SFR $ITB

This post was just published on ZYX Buy Change Alert. KB Home (KBH) stock is long from $16.15. It is trading at $24.35 as of ...

WEEKLY MARKET DIGEST: FATE OF STOCKS, GOLD AND BONDS; WINDOW DRESSING AHEAD, IRON ORE CRUSHED $DIA $GLD $QQQ $SLV $SPY $TBF $TBT $USO

   Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying ...

RAISING HOME BUILDER KB HOMES BUY ZONE AND TARGET ZONE AFTER EARNINGS $KBH $XHB

This post was just published on ZYX Buy Change Alert. KBH is long from $16.15.  As of this writing it is trading at ...

TAKE PARTIAL PROFITS ON HOME BUILDER KB HOMES $KBH

This post was just published on ZYX Buy Change Alert. KBH is long from an average price of $16.15.  As of this writing ...

YELLEN MAY BE GIVING THE SIGN TO BUY HARD ASSETS $BHP $CLF $CUT $DHI $GLD $ICF $IYR $JJC $KBH $LEN $RIO $RWR $SLV $TCK $TOL $USO $VALE $VNQ $WOOD

In a speech in Boston, Fed Chair Janet Yellen talked about to using monetary policy to run the economy hot. ...

UPDATE ON HOME BUILDER KB HOMES AFTER EARNINGS $KBH $XHB $ITB $TOL $LEN $PHM $CAA

This post was just published on ZYX Buy Change Alert. KBH is a major home builder.  The company reported better than expected earnings ...

HOME BUILDER KB HOME HAS BECOME A PRIME BUYOUT TARGET, INITIATE OR ADD ON A PULLBACK $KBH $ITB $XHB $PHM

This post was just published on ZYX Buy Change Alert. KBH is a major home builder.  The company reported better than expected ...

INITIATE OR ADD TO KB HOME $KBH

This post was just published on ZYX Buy Change Alert. KBH is a major home builder.  The company reported better than expected ...

TAKE ADVANTAGE OF THE STRENGTH TO TAKE PARTIAL PROFITS ON KB HOME $KBH

This post was just published on ZYX Buy Change Alert. KBH is long from an average price of $16.83.  50% of the ...

RAISING KB HOMES BUY ZONE POST EARNINGS $KBH

This post was just published on ZYX Buy Change Alert. KBH reports earnings of $o.08 vs. consensus of $0.02; revenues of $500.1 million ...

INITIATE OR ADD TO KB HOME $KBH $LEN $ITB $XHB

This post was just published on ZYX Buy Change Alert. KBH is a home builder.  The new Fed statement is positive for ...

REDUCE POSITION IN HOME BUILDER KB HOME $KBH

This post was just published on ZYX Buy Change Alert. Persistent weakness in housing continues. Consider reducing position in the home builder ...

UPDATE ON HOME BUILDER KB HOMES $KBH $PHM $DHI $XHB $ITB

This post was just published on ZYX Buy Change Alert. One of the premise behind holding KBH has been that housing would ...

MASSIVE CONFUSION AT THE FED: REDUCE POSITION IN KB HOMES $KBH

This post was just published on ZYX Buy Change Alert. Consider reducing position in KBH by a 10% tranche.  The trigger is ...

Follow

Get every new post delivered to your Inbox

Join other followers

error: Content is protected !!