KB Home ( KBH), a top-five homebuilder with a $530 million market value, gets a "hold" rating from S&P, but the ratings firm says optimistically that it expects "revenues will rebound 20% in fiscal 2012 from an expected recovery in the housing market." KB Home's shares are up 16% in the past three months, but down 38% this year, although the three-year average annual return is 17.5%. The top 10 institutional investors own 57% of its shares. Morningstar gives the company a five-star rating, its highest, and has a $21 "fair value" price target on its shares. The stock trades at less than $7 today. Morningstar says in a recent research note that KB Home "operates as one of the more forward-thinking and pragmatic firms in our homebuilder coverage. The firm holds a deep-rooted merchant-like approach to its business, a differentiated strategy in an industry often dominated by more maverick, real-estate-centric mindsets." >>To see these stocks in action, visit the 5 Homebuilder Stocks With Bright 2012 Outlooks portfolio on Stockpickr.