Is It Safe to Buy Home Builders?

Home Builder Stock #3 – KB Home (KBH)

KB Home (KBH) was hit incredibly hard by the housing bust. The stock fell from $82 to just $7 per share. We haven’t seen shakeouts like that
since the tech bust.

Unlike some of the other homebuilders, KBH probably hit bottom early. The company’s loss from last year wasn’t as bad as its loss from 2007, and
that’s a good sign. What I also like about KB Home is that the stock’s volatility has calmed down, which is often the result of heavy institutional
buying.

KB Home is a good stock for investors looking to pick up a beaten down home builder.

Next – Home Builder Stock #4