Traders Eye Homebuilders Following KB Home (KBH) Results

Following KB Home's (NYSE: KBH) first-quarter miss earlier, and ahead of new home sales data due out at 10am ET, traders are keeping an eye on rival homebuilders.

Arguably, the group has been one of the better performing sectors over the past few weeks, with names like Lennar (NYSE: LEN), PulteGoup (NYSE: PHM), and Toll Brothers (NYSE: TOL) all rising between 7 and 12 percent since the start of March.

But Friday's results from KB Home, showing an increase in cancellation rates as well as a dip in new orders, may be a bad indication for the builders slated to release reports over the next week.

Others to keep an eye on include:

• Beazer (NYSE: BZH);
  
• DR Horton (NYSE: DHI); and
  
• Hovnanian (NYSE: HOV).

The Homebuilder ETF (NYSE: XHB) is down nearly 2.2 percent at last check.

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