NEW YORK (TheStreet) -- Shares of KB Home (KBH) - Get Report were climbing in mid-afternoon trading on Thursday after rival home-builder Toll Brothers's (TOL) 2016 third-quarter results indicated steady growth within the housing market.
Toll Brothers said that net contracts climbed 18% to 1,748 in the most recent period compared to a year ago. The metric indicates future revenue for homebuilders, and marked the highest growth in two years, Reuters reports.
Revenue rose 23.5% year-over-year to $1.27 billion.
"Demand within Toll remains fine, suggesting that the leisure market is holding fine," Gabelli & Co. analyst Alvaro Lacayo told Reuters.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.
KB Home's strengths such as its robust revenue growth, attractive valuation levels, increase in net income, growth in earnings per share and good cash flow from operations outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
You can view the full analysis from the report here: KBH
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.