KB Home’s Increased Demand

Today is Thursday, March 23, 2023.

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KB Home’s Increased Demand

KB Home (NYSE: KBH) ticked up by 2.72% in after-hours trading on Wednesday after the homebuilding company posted positive financial earnings.

Financials: KB Home reported earnings of $1.45 per share in the past quarter and revenue of $1.48 billion; both were better than expected.

Good News: It was a great quarter for KB Home. Revenues increased. Book value per share grew. The company says it is seeing an increase in demand. And it introduced a $500 million stock buyback plan.

Final Thoughts: Up 13% this year, KB Home is trying to ride a new wave of housing demand.

Notables

Notable Earnings Today: Darden Restaurants (NYSE: DRI), Accenture (NYSE: ACN), ADMA Biologics (Nasdaq ADMA), General Mills (NYSE: GIS), Heron Therapeutics (Nasdaq: HRTX), Phunware (Nasdaq: PHUN), FactSet (NYSE: FDS), KULR Technology Group (NYSE American: KULR), Commercial Metals (NYSE: CMC), Ouster (NYSE: OUST), Gambling.com Group (Nasdaq: GAMB), Oxford Industries (NYSE: OXM), BRP (Nasdaq: DOOO), Aptose Biosciences (Nasdaq; APTO), Exscientia (Nasdaq: EXAI), Vasta Platform (Nasdaq: VSTA), Affimed (Nasdaq: AFMD), The Metals Company (Nasdaq: TMC), Secureworks (Nasdaq: SCWX), Quest Resource Holding (Nasdaq; QRHC).

Notable IPOs Today: Clean Energy Technologies, Inc. Common Stock (Nasdaq CETY), CBL International Limited Ordinary Shares (Nasdaq: BANL).

Notable Equity Crowdfunding Campaigns Ending Today: Mama Noy’s Kitchen (Honeycomb), Loba Pastry + Coffee (Honeycomb).

Notable Economic Events Today: Building Permits (8:00 a.m. ET), Jobless Claims (8:30 a.m. ET), U.S. Current Account Deficit (8:30 a.m. ET), New Home Sales (10:00 a.m. ET).

Treasury Bills Become Latest Investment Craze

Forget stocks and cryptocurrencies for a second - Treasury bills have become a new focus for investors in the past year.

Numbers: In 2021, nearly 700,000 accounts were created at TreasuryDirect.gov and last year that number ballooned to 3.6 million, according to CNBC.

Why: Investors are flocking to Treasury bonds because they are viewed as a safer investment choice. This was especially true last year as equities plummeted and alternative investments (such as crypto) faced scrutiny.

Pros: Treasury bills can be seen as advantageous now due to rising interest rates and they can provide some protection from the economic impact of inflation.

But: Treasury bills are far from perfect, especially in 2023. The recent political fight in Congress over the debt ceiling could spell trouble for Treasury bills.

Final Thoughts: It is clear that Treasury bills are mostly safe, easy to invest in, and can provide some needed income to investors in 2023. Just watch out for the debt ceiling fight.

Health Care Stocks Are Down So Far in 2023

Health care really stands out as a weak sector in 2023.

How Bad: 78% of health care stocks are down at least 20% from their 1-year high, according to Advisorpedia.

Powering the Story: Coming out of the worst part of the pandemic, many health care stocks are struggling to grow their earnings. Revenue growth has stayed flat.

Final Thoughts: If there’s a recession, health care stocks tend to do relatively well when compared to other stocks.

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Trends to Watch

Looking for Hints: Short-Term BTC Holders, Stablecoin Supplies Could Indicate Cryptos' Future Price Direction (CoinDesk)

Bad Dog: Chewy stock dips as earnings show shrinking customer count, forecast of no profit growth (MarketWatch)

Stubborn: Fed Walks Tightrope Between Inflation and Bank Turmoil—but for How Long? (The Wall Street Journal)

An Unlikely Pick: Investors Shaken by Banking Crisis Flock to Emerging Asia Bonds (Bloomberg)

Taking a Shot: Moderna CEO Stephane Bancel defends fivefold price hike of Covid vaccine during Senate grilling (CNBC)

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