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KB Home (KBH) Outpaces Stock Market Gains: What You Should Know

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KB Home (KBH - Free Report) closed the most recent trading day at $43.81, moving +0.97% from the previous trading session. This change outpaced the S&P 500's 0.2% gain on the day.

Heading into today, shares of the homebuilder had lost 5.55% over the past month, outpacing the Construction sector's loss of 7.02% and lagging the S&P 500's gain of 1.06% in that time.

Wall Street will be looking for positivity from KBH as it approaches its next earnings report date. This is expected to be June 23, 2021. On that day, KBH is projected to report earnings of $1.29 per share, which would represent year-over-year growth of 134.55%. Our most recent consensus estimate is calling for quarterly revenue of $1.5 billion, up 64.49% from the year-ago period.

KBH's full-year Zacks Consensus Estimates are calling for earnings of $5.70 per share and revenue of $6.03 billion. These results would represent year-over-year changes of +82.11% and +44.05%, respectively.

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.

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. The Zacks Consensus EPS estimate has moved 0.29% higher within the past month. KBH is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, KBH is currently trading at a Forward P/E ratio of 7.61. This represents a no noticeable deviation compared to its industry's average Forward P/E of 7.61.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 9, putting it in the top 4% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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