NEW YORK (TheStreet) -- KB Home shares are up 5.7% to $12.61 in trading on Thursday as the entire home building sector benefited from the release of rival PulteGroup's fourth quarter earning results before the opening bell today. PulteGroup reported a fourth quarter net profit of $217.1 million, or 43 cents per share on an adjusted basis, on revenue of $1.82 billion. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Analysts on average were expecting the company to report quarterly earnings of 41 cents per share on revenue of $1.78 billion. Fellow home builders Lennar and D.R. Horton are also up, 2.88% and 3.9%, respectively, in trading today. 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 revenue growth, notable return on equity, attractive valuation levels, compelling growth in net income and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth greatly exceeded the industry average of 9.6%. Since the same quarter one year prior, revenues rose by 28.7%. Growth in the company's revenue appears to have helped boost the earnings per share. The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Household Durables industry and the overall market, KB HOME's return on equity significantly exceeds that of both the industry average and the S&P 500. The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Household Durables industry. The net income increased by 2933.2% when compared to the same quarter one year prior, rising from $28.12 million to $852.80 million. KB HOME reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, KB HOME increased its bottom line by earning $9.03 versus $0.41 in the prior year. For the next year, the market is expecting a contraction of 89.8% in earnings ($0.92 versus $9.03). You can view the full analysis from the report here: KBH Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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