Back to top

Image: Bigstock

KB Home (KBH) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

In the latest trading session, KB Home (KBH - Free Report) closed at $51, marking a +0.33% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.04%.

Heading into today, shares of the homebuilder had gained 7.17% over the past month, lagging the Construction sector's gain of 9.02% and outpacing the S&P 500's gain of 3.83% in that time.

Wall Street will be looking for positivity from KBH as it approaches its next earnings report date. On that day, KBH is projected to report earnings of $1.28 per share, which would represent year-over-year growth of 132.73%. Our most recent consensus estimate is calling for quarterly revenue of $1.5 billion, up 64.49% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.68 per share and revenue of $6.01 billion. These totals would mark changes of +81.47% and +43.57%, respectively, from last year.

Any recent changes to analyst estimates for KBH should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate has moved 3.95% higher within the past month. KBH is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that KBH has a Forward P/E ratio of 8.95 right now. This valuation marks a discount compared to its industry's average Forward P/E of 9.32.

It is also worth noting that KBH currently has a PEG ratio of 0.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Home Builders industry currently had an average PEG ratio of 0.76 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 33, which puts it in the top 13% 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

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

KB Home (KBH) - free report >>

Published in