The inflation report for December 2023 will take a back seat after KB Home (KB) posted fourth-quarter results. Shelter costs account for most of the consumer’s expenses, while investors will assess the homebuilder’s guidance.
KB Home posted Q4 revenue falling by 13.9% Y/Y to $1.67 billion. The average selling price fell from $510,400 to $487,300. The price drop is welcome news for inflation watchers. The Fed wants to lower home and shelter costs.
KB Home expects revenue of $6.4 billion to $6.8 billion, above analyst consensus of $6.62 billion.
Home-related stocks that may move for Thursday include Opendoor Technologies (OPEN), Redfin (RDFN), and the SPDR Homebuilders ETF (XHB).
Home lenders to watch include Rocket Companies (RKT) and UWM Holdings (UWMC).
Acquisition target iRobot (IRBT) lost ~ 20% yesterday on reports that Amazon (AMZN) would not concede to the European Union. Amazon had plans to buy iRobot for $1.7 billion but IRBT stock has a market capitalization of $829 million. Short-sellers hold a 10.96% short float against the stock.
Chances are increasingly low that the deal will succeed.
Momentum investors will watch CrowdStrike (CRWD) and Nvidia (NVDA) today. Both stocks closed at fresh highs. WD-40 (WDFC) will need to rise today to follow through with yesterday’s 15.2% rally. WD-40 posted Q1/2024 revenue growing by an impressive 12% Y/Y to $140.4 million.
