5 Best Small-Cap Stocks To Buy Now

  1. KB Home (NYSE:KBH)

Fisher Asset Management owned 2.72 million shares of KB Home (NYSE:KBH) on September 30 after selling off less than 45,000 shares of the homebuilder during Q3. Fisher Asset held the most valuable position in the stock on June 30 among the funds tracked by Insider Monkey, 23 of whom were KBH shareholders, and that position jumped to over $104 million in value following a strong Q3 for the stock.

New home sales and orders have been surprisingly strong in 2020, jumping by 17% year-over-year. Furthermore, August’s seasonally-adjusted annual rate of new home sales topped 1 million for the first time in 14 years, before sliding back to 959,000 in September. The pandemic has in fact been a boon for the housing market, spurring added mobility in the marketplace through growing demand for houses with home offices and gyms.

In its Q3 investor letter, Keeley Asset Management said that it expects KB Home’s near-term demand to remain strong thanks to record-low mortgage rates and aging Millennials entering prime home-buying age.