Posted in home repair

KB Home Can See ~30% Upside Over The Next 12 To 18 Months As Build-To-Order Headwinds Turn Into Tailwinds (NYSE:KBH)

KB Home (KBH) is an entry level homebuilder with ~55% of its deliveries to first-time home buyers, ~22% of its deliveries to first move-up buyers and rest 23% to second move-up and active adult buyers combined.

Recent Underperformance

While most of the homebuilders are making new highs post Covid-19 and entry level homebuilders are outperforming the industry, KB Home is still trading ~11% below its February 2020 highs. The company reported an impressive net order growth for July at 23%, but it was still much lower than over 50% yoy growth which other entry level homebuilders like Meritage Homes (MTH), DR Horton (DHI) are reporting. Hence, its stock price is lagging its peers.

The key reason behind this underperformance is the company’s Built-to-Order™ approach. KB Home provides each of its homebuyers with a highly personalized experience where they can make a wide range of structural and design choices for their

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Continue Reading KB Home Can See ~30% Upside Over The Next 12 To 18 Months As Build-To-Order Headwinds Turn Into Tailwinds (NYSE:KBH)
Posted in home improvement

Peloton: More Upside In This Work-From-Home Gem (NASDAQ:PTON)

Peloton (PTON) has emerged during the pandemic as one the gems of the stay-at-home dynamic, as its connected fitness systems provide the in-home convenience of a workout without needing a gym (and when gyms had been closed). Peloton witnessed strong growth during the pandemic, and while shares may be a little pricey after following the tech rally step by step, the long-term growth potential remains visible, but not free from risks.

Source: Investor Presentation

For the third quarter Peloton recorded over 2.6 million total members logging over 44 million workouts, with 886,000 connected fitness subscribers, which corresponds to the Bike and Tread, as the digital subscription can act as a stand-alone service. On top of that, the 12-month connected fitness subscription had a 93% retention rate and only 0.46% monthly churn.

Connected fitness subscriber growth has been outstanding, up 94% YoY; digital subscription subscribers grew less – up 64%. As

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Continue Reading Peloton: More Upside In This Work-From-Home Gem (NASDAQ:PTON)