Is KB Home (KBH) Stock Outpacing Its Construction Peers This Year?

KBH

The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. KB Home (KBH - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of KBH and the rest of the Construction group's stocks.

KB Home is a member of the Construction sector. This group includes 104 individual stocks and currently holds a Zacks Sector Rank of #6. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. KBH is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for KBH's full-year earnings has moved 9.79% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, KBH has gained about 20.85% so far this year. In comparison, Construction companies have returned an average of 17%. This means that KB Home is outperforming the sector as a whole this year.

Looking more specifically, KBH belongs to the Building Products - Home Builders industry, a group that includes 19 individual stocks and currently sits at #92 in the Zacks Industry Rank. This group has gained an average of 16.81% so far this year, so KBH is performing better in this area.

Investors in the Construction sector will want to keep a close eye on KBH as it attempts to continue its solid performance.

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