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

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KB Home (KBH - Free Report) closed the most recent trading day at $44.04, moving -1.37% from the previous trading session. This move lagged the S&P 500's daily loss of 0.29%.

Coming into today, shares of the homebuilder had lost 4.7% in the past month. In that same time, the Construction sector lost 0.48%, while the S&P 500 lost 1.27%.

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%. Meanwhile, our latest consensus estimate is calling for revenue of $1.5 billion, up 64.49% from the prior-year quarter.

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 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. KBH is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, KBH currently has a Forward P/E ratio of 7.86. This valuation marks a discount compared to its industry's average Forward P/E of 8.65.

Also, we should mention that KBH has a PEG ratio of 0.41. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 0.68 based on yesterday's closing prices.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 39, putting it in the top 16% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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