KB Home (NYSE: KBH) was hit incredibly hard by the housing bust. The stock fell from $82 to just $7 per share. We haven't seen shakeouts like that since the tech bust.
Unlike some of the other home builders, KBH probably hit bottom early. The company's loss from last year wasn't as bad as its loss from 2007, and that's a good sign.
What I also like about KB Home is that the stock's volatility has calmed down, which is often the result of heavy institutional buying.
KB Home is a good stock for investors looking to pick up a beaten down home builder.
Next: Home builder stock #4
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