Oil Prices to Impact Homebuilding Stocks?
With 29% and 21% exposure for KB Home and Lennar, respectively, to Texas, in terms of community count, the potentially negative impact of lower oil prices on these homebuilders’ stocks will be something to keep an eye on moving forward. However, for those companies less exposed to oil dependent economies, cheap oil should prove to be a boon. While the overall impact will be difficult to gauge, some of the benefits could include – increased consumer purchasing power from lower gas prices; cheaper cost of homeownership due to decreased utility costs; lower materials costs from cheaper petroleum based raw material inputs and reduced transportation costs.
About author
You might also like
Builder M&A Talk
On the heels of the recently announced Standard Pacific / Ryland merger, Builder Magazine examines the elements of a successful homebuilder M&A transaction, and which companies are well-positioned to make
KB Home (KBH) Tops Q4 Earnings Estimates, Backlog Strong
KB Home KBH reported impressive fourth-quarter fiscal 2016 earnings of 40 cents per share that surpassed the Zacks Consensus Estimate of 37 cents by 8.1%. On a year-over-year basis, the
KB Home Stock Hammered
KB Home suffered its worst one-day percentage drop since Aug. 19, 1992 on Tuesday with a 16.3% decline. With lower than expected margins in the 4th quarter of 2014 and
