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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 at $45.24 in the latest trading session, marking a -1.37% move from the prior day. This change lagged the S&P 500's 0.36% loss on the day.

Heading into today, shares of the homebuilder had lost 7.01% over the past month, lagging the Construction sector's gain of 0.13% and the S&P 500's gain of 0.75% 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 $1.29 per share. This would mark year-over-year growth of 134.55%. 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 $5.70 per share and revenue of $6.03 billion. These totals would mark changes of +82.11% and +44.05%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for KBH. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.29% higher. KBH currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that KBH has a Forward P/E ratio of 8.05 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 8.05.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 19, putting it in the top 8% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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