Core Viewpoint - Century Communities (CCS) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Century Communities for the fiscal year ending December 2024 is projected at $10.64 per share, reflecting a 31.5% increase from the previous year's reported figure [9]. - Over the past three months, analysts have raised their earnings estimates for Century Communities by 5.3% [9]. Zacks Rating System - The Zacks rating system is based solely on a company's changing earnings picture, which is crucial for individual investors to make informed decisions [2][3]. - The system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions [10][11]. Market Implications - The upgrade to Zacks Rank 1 suggests that Century Communities is positioned for potential price increases due to improving earnings outlook [4][11]. - Rising earnings estimates are correlated with stock price movements, and institutional investors often react to these changes, further influencing stock prices [5][6].

Core Insights - Century Communities, Inc. has announced the acquisition of substantially all assets of Anglia Homes, LP, significantly expanding its operations in the Houston market [1][2] - This acquisition adds over 25 communities to Century Communities' portfolio, more than doubling its community count in Greater Houston and positioning it among the top five homebuilders in the area [2][3] Company Overview - Century Communities is recognized as one of the largest homebuilders in the U.S. and a leader in online home sales, having been ranked as the highest homebuilder on Newsweek's list of America's Most Trustworthy Companies for 2024 [1][4] - The company operates in 18 states and over 45 markets, focusing on building high-quality, affordable homes [4] Acquisition Details - The acquisition aligns with Century Communities' strategy of increasing market depth in a land-light manner, enhancing access to capital-efficient finished lots [3] - Anglia Homes specializes in one- and two-story single-family homes priced from the mid $200,000s to the high $400,000s, which will be transitioned to the Century Communities brand [2][3] Leadership Statements - Executives from Century Communities expressed confidence in the acquisition, highlighting Houston's strong performance over the past decade and the alignment of values between the two companies [3] - Mike Manners, Chairman of Anglia Homes, emphasized the shared commitment to quality, location, affordability, and design, which will enhance the homebuying experience for customers [3][5]

Group 1: Development Overview - Fulshear Junction will introduce 251 homesites with construction expected to start in 2025, featuring 21 acres of mixed-use commercial real estate [1][2] - The development aims to attract homebuyers seeking convenient access to retail, dining, offices, and childcare [1] Group 2: Educational and Commuting Benefits - Students in the area will attend newly constructed schools within the Lamar Consolidated ISD, which is becoming one of the highest-rated school systems in the Houston area [2] - Fulshear Junction offers quick access to major highways, connecting to I10 and Texas State Highway 99, with Houston approximately 40 miles away [2] Group 3: Company Profile - Century Communities, Inc. is a leading homebuilder in the U.S., recognized for its online home sales and ranked as one of America's Most Trustworthy Companies in 2024 [5] - The company operates in 18 states and over 45 markets, providing a range of services including title, insurance, and lending through its subsidiaries [5]

Core Viewpoint - Investing in bargain stocks with recent price momentum is a safer approach, utilizing the Zacks Momentum Style Score to identify strong candidates [1] Group 1: Stock Performance and Valuation - Century Communities (CCS) has a fast-paced momentum with a beta of 1.86, indicating it moves 86% higher than the market [2] - CCS stock gained 21.5% over the past 12 weeks, reflecting its strong performance [5] - CCS is trading at a Price-to-Sales ratio of 0.79, suggesting it is attractively priced at 79 cents for each dollar of sales [6] - The stock has a four-week price change of 29.9%, indicating growing investor interest [11] Group 2: Investment Strategy - Momentum investors focus on "buying high and selling higher," rather than waiting for cheap stocks to recover [4] - CCS has a Momentum Score of A, indicating a favorable entry point for investors [9] - An upward trend in earnings estimate revisions has helped CCS achieve a Zacks Rank 2 (Buy), which is associated with strong momentum [10] Group 3: Additional Insights - There are several stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting multiple investment opportunities [3][8] - The Zacks Research Wizard can assist in backtesting stock-picking strategies to ensure past profitability [7]

Company Overview - Century Communities, Inc. (NYSE: CCS) is one of the largest homebuilders in the U.S. and a leader in online home sales, recognized as the highest-ranked homebuilder on Newsweek's list of America's Most Trustworthy Companies 2024 for the second consecutive year [4][6] - The company operates in 18 states and over 45 markets, offering a range of services including title, insurance, and lending through its subsidiaries [4] Online Homebuying Experience - Century Complete features an industry-first online homebuying process, allowing buyers to shop for homes and complete purchases online while still working with their local real estate agents [1][4] - The online process includes steps such as selecting a home, filling out a Buy Online form, submitting an earnest money deposit, and electronically signing a purchase contract [2][3] New Community Launch - A new community named Poplar Trace is set to open soon in Corydon, IN, with sales expected to begin in early fall [6][8] - The community will offer affordable single- and two-story floor plans, with homes featuring modern amenities and convenient access to outdoor recreation [7][8]

Core Viewpoint - Century Communities (CCS) is positioned as a strong momentum stock with a Zacks Rank of 2 (Buy) and a Momentum Style Score of A, indicating potential for outperformance in the near term [2][11]. Group 1: Momentum Characteristics - Momentum investing focuses on following a stock's recent price trends, with the strategy of buying high and selling higher, capitalizing on established price movements [6]. - CCS has shown significant price appreciation, with shares rising 21.91% over the past quarter and 29.3% over the last year, outperforming the S&P 500, which increased by 7.48% and 21.12% respectively [9]. Group 2: Earnings Estimates and Revisions - Over the past two months, CCS has seen one earnings estimate increase, raising the consensus estimate from $10.13 to $10.43, with no downward revisions during this period [5]. - The Zacks Momentum Style Score incorporates trends in earnings estimate revisions, which are crucial for assessing stock potential [10]. Group 3: Trading Volume and Market Comparison - CCS's average 20-day trading volume is 357,312 shares, with above-average volume typically indicating bullish trends [4]. - In the past week, CCS shares increased by 6.1%, outperforming the Zacks Building Products - Home Builders industry, which rose by 3.96% during the same timeframe [12].

Core Viewpoint - Century Communities (CCS) has shown strong stock performance, with a 24.9% increase over the past month and reaching a 52-week high of $103.42 [1] Financial Performance - For the current fiscal year, Century Communities is projected to earn $10.13 per share on revenues of $4.32 billion, reflecting a 25.22% increase in EPS and a 17.04% increase in revenues [2] - For the next fiscal year, earnings are expected to rise to $11.83 per share on $4.7 billion in revenues, indicating a year-over-year change of 16.78% in EPS and 8.66% in revenues [2] Valuation Metrics - The stock trades at 9.9X current fiscal year EPS estimates, slightly above the peer industry average of 9.7X, and at 11.5X trailing cash flow compared to the peer group's average of 9.3X [5] - Century Communities has a Value Score of B, a Growth Score of C, and a Momentum Score of D, resulting in a combined VGM Score of B [4] Industry Context - The Building Products - Home Builders industry ranks in the top 19% of all industries, suggesting favorable conditions for Century Communities and its peers [6] - Century Communities has consistently exceeded earnings estimates, reporting EPS of $2.65 against a consensus estimate of $2.46 in its last earnings report [6] Zacks Rank - Century Communities holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates [8] - The company meets the criteria for potential investment, as it has a Zacks Rank of 1 or 2 and Style Scores of A or B [9] Competitive Position - Century Communities is positioned well within the industry, with peers like KB Home (KBH) also showing strong performance and a Zacks Rank of 2 (Buy) [10]

Core Insights - Oak Creek Preserve offers single-family homes starting from the high $400s, featuring one- and two-story floor plans with 3 to 5 bedrooms and up to 3,161 square feet [1][6] - The community is strategically located with direct access to the St. Johns River and is in close proximity to downtown Jacksonville attractions [1][2] Company Overview - Century Communities is one of the largest homebuilders in the U.S., recognized for its online home sales and ranked as one of America's Most Trustworthy Companies by Newsweek for 2024 [7] - The company operates in 18 states and over 45 markets, providing a range of services including title, insurance, and lending through its subsidiaries [7] Product Features - Homes at Oak Creek Preserve include chef's kitchens, covered patios, and smart home packages, with a model home available for tours [6] - The online homebuying experience allows customers to shop for homes, submit deposits, and sign contracts electronically [3][6]

Financial Data and Key Metrics Changes - The company reported a net income of $83.7 million, or $2.61 per diluted share, representing a 63% year-over-year increase [54] - Home sales revenues reached $1 billion, up 24% year-over-year, with adjusted homebuilding gross margin increasing by 300 basis points to 24% [43][71] - Adjusted earnings per diluted share rose by 66% year-over-year to $2.65, with EBITDA increasing by 61% to $129.1 million [54][43] Business Line Data and Key Metrics Changes - Deliveries increased by 17% year-over-year to 2,617 homes, with the average sales price (ASP) at $389,000 [42][36] - The company started 3,867 homes in Q2, a 37% increase from Q1, and opened 50 new communities, bringing the total community count to 266 [66][67] - The backlog of sold homes was valued at $755 million, with an average price of $430,500, indicating a strong demand for new homes [56] Market Data and Key Metrics Changes - The company experienced year-over-year increases in pace for both Q1 and Q2, with the West and Texas regions showing the strongest gains at 59% and 30% respectively [36][3] - Nearly 100% of homes were built on a spec basis, allowing the company to control costs and meet demand effectively [37] - The Southeast and Texas accounted for close to 50% of the total lot count, reflecting the company's strategy to grow in these attractive markets [50] Company Strategy and Development Direction - The company focuses on affordability, targeting a wide range of potential homebuyers, with nearly 90% of deliveries priced below FHA limits [48][37] - The strategy includes a land-light approach, acquiring finished lots to support community count growth and operational efficiencies [51][46] - The company aims to deepen its market share and improve operating efficiencies as it continues to grow its national footprint [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength and durability of the platform built over the last decade, anticipating continued growth in deliveries and community count [46][74] - The company noted that while there is some pressure from resale inventory, it remains manageable, and the demand for affordable new homes is healthy [7][140] - Management expects to see sequential growth in both the third and fourth quarters of 2024, driven by strong order trends and community openings [70][85] Other Important Information - The company repurchased nearly 500,000 shares during the quarter, with a new stock repurchase program approved for up to 4.5 million additional shares [73][84] - The tax rate for the quarter was 24.3%, with expectations for the full year to be in the range of 24.5% to 25% [72] - The company ended the quarter with $841 million in total liquidity and no senior debt maturities until June 2027, providing flexibility in leverage management [73] Q&A Session Summary Question: How do mortgage rate buydowns affect the income statement? - The impact of mortgage rate buydowns is reflected as a reduction in average sales price [100] Question: What is the outlook for financial services profitability? - Financial services profitability was impacted by increased costs and a lower gain on sale, with expectations for margins to stabilize in the back half of the year [101][115] Question: How is the competitive environment shaping up this summer compared to last year? - The competitive environment remains aggressive, with builders primarily offering interest rate assistance rather than significant price reductions [102][117] Question: What is the strategy for community count growth moving forward? - The company plans to continue increasing community counts and expects to see starts increase along with community growth [125] Question: Are there any specific markets facing challenges? - While Texas remains strong, there has been some inventory buildup in Southwest Florida, but it represents a small part of the business [132]

Century Communities (CCS) came out with quarterly earnings of $2.65 per share, beating the Zacks Consensus Estimate of $2.46 per share. This compares to earnings of $1.60 per share a year ago. These figures are adjusted for non-recurring items. Over the last four quarters, the company has surpassed consensus EPS estimates four times. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary ...