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

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KB Home (KBH - Free Report) closed at $42.57 in the latest trading session, marking a +1.07% move from the prior day. This move outpaced the S&P 500's daily loss of 0.04%.

Prior to today's trading, shares of the homebuilder had lost 4.36% over the past month. This has was narrower than the Construction sector's loss of 5.69% and lagged the S&P 500's gain of 1.35% in that time.

KBH will be looking to display strength as it nears its next earnings release, which 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.48 billion, up 61.41% from the year-ago period.

KBH's full-year Zacks Consensus Estimates are calling for earnings of $5.70 per share and revenue of $6.05 billion. These results would represent year-over-year changes of +82.11% and +44.56%, respectively.

It is also important to note the recent changes to analyst estimates for KBH. These revisions help to show the ever-changing nature of near-term business trends. 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. Within the past 30 days, our consensus EPS projection has moved 0.29% higher. KBH currently has a Zacks Rank of #2 (Buy).

Digging into valuation, KBH currently has a Forward P/E ratio of 7.39. For comparison, its industry has an average Forward P/E of 7.39, which means KBH is trading at a no noticeable deviation to the group.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 20, which puts it in the top 8% 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.

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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