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KB Home (KBH) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, KB Home (KBH - Free Report) closed at $41.25, marking a -0.53% move from the previous day. This change lagged the S&P 500's daily loss of 0.03%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq lost 0.58%.

Heading into today, shares of the homebuilder had gained 23.21% over the past month, outpacing the Construction sector's gain of 4.38% and the S&P 500's gain of 4.45% in that time.

Investors will be hoping for strength from KBH as it approaches its next earnings release. In that report, analysts expect KBH to post earnings of $0.87 per share. This would mark year-over-year growth of 38.1%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.21 billion, up 12.47% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.11 per share and revenue of $5.91 billion, which would represent changes of +63.26% and +41.18%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for KBH. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. KBH is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note KBH's current valuation metrics, including its Forward P/E ratio of 8.62. Its industry sports an average Forward P/E of 8.62, so we one might conclude that KBH is trading at a no noticeable deviation comparatively.

We can also see that KBH currently has a PEG ratio of 0.41. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Home Builders industry currently had an average PEG ratio of 0.78 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 21, which puts it in the top 9% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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