NEW YORK (TheStreet) -- Shares of KB Home (KBH) are rising by 2.85% to $17.69 in early afternoon trading on Tuesday, as home builder stocks react positively to the Commerce Department's report that U.S. home construction rebounded in July, increasing 15.7%, following a 4% decline in June and a 7.4% drop in May, the Associated Press reports.
Home builder stocks are seeing a second day of gains. On Monday, shares rose after the National Association of Home Builders reported home builder confidence reached 55 points for August, showing an optimistic outlook in the industry's sales trends.
July's numbers showed strength in single-family home construction, which increased 8.3%, and apartment construction, which rose 33%, AP added.
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Separately, TheStreet Ratings team rates KB HOME as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate KB HOME (KBH) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, attractive valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."