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KB Home (KBH) Registers a Bigger Fall Than the Market: Important Facts to Note
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KB Home (KBH - Free Report) closed at $64.27 in the latest trading session, marking a -0.8% move from the prior day. This change lagged the S&P 500's 0.46% loss on the day. Meanwhile, the Dow experienced a drop of 0.98%, and the technology-dominated Nasdaq saw a decrease of 0.64%.
Shares of the homebuilder have depreciated by 6.86% over the course of the past month, underperforming the Construction sector's loss of 6.71% and the S&P 500's loss of 3.04%.
The investment community will be paying close attention to the earnings performance of KB Home in its upcoming release. The company is forecasted to report an EPS of $1.79, showcasing a 7.73% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.64 billion, indicating a 7.1% decline compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.01 per share and a revenue of $6.77 billion, signifying shifts of +13.94% and +5.55%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for KB Home. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.78% higher. As of now, KB Home holds a Zacks Rank of #1 (Strong Buy).
Digging into valuation, KB Home currently has a Forward P/E ratio of 8.09. For comparison, its industry has an average Forward P/E of 9.05, which means KB Home is trading at a discount to the group.
It's also important to note that KBH currently trades at a PEG ratio of 0.73. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 0.85.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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KB Home (KBH) Registers a Bigger Fall Than the Market: Important Facts to Note
KB Home (KBH - Free Report) closed at $64.27 in the latest trading session, marking a -0.8% move from the prior day. This change lagged the S&P 500's 0.46% loss on the day. Meanwhile, the Dow experienced a drop of 0.98%, and the technology-dominated Nasdaq saw a decrease of 0.64%.
Shares of the homebuilder have depreciated by 6.86% over the course of the past month, underperforming the Construction sector's loss of 6.71% and the S&P 500's loss of 3.04%.
The investment community will be paying close attention to the earnings performance of KB Home in its upcoming release. The company is forecasted to report an EPS of $1.79, showcasing a 7.73% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.64 billion, indicating a 7.1% decline compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.01 per share and a revenue of $6.77 billion, signifying shifts of +13.94% and +5.55%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for KB Home. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.78% higher. As of now, KB Home holds a Zacks Rank of #1 (Strong Buy).
Digging into valuation, KB Home currently has a Forward P/E ratio of 8.09. For comparison, its industry has an average Forward P/E of 9.05, which means KB Home is trading at a discount to the group.
It's also important to note that KBH currently trades at a PEG ratio of 0.73. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 0.85.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.