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Are Investors Undervaluing KB Home (KBH) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
KB Home (KBH - Free Report) is a stock many investors are watching right now. KBH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.25, which compares to its industry's average of 8.29. Over the last 12 months, KBH's Forward P/E has been as high as 9.71 and as low as 2.68, with a median of 7.70.
We should also highlight that KBH has a P/B ratio of 1.04. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. KBH's current P/B looks attractive when compared to its industry's average P/B of 1.33. Over the past 12 months, KBH's P/B has been as high as 1.17 and as low as 0.63, with a median of 0.83.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. KBH has a P/S ratio of 0.56. This compares to its industry's average P/S of 0.69.
Finally, investors should note that KBH has a P/CF ratio of 5.12. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.66. Within the past 12 months, KBH's P/CF has been as high as 5.79 and as low as 2.80, with a median of 3.77.
If you're looking for another solid Building Products - Home Builders value stock, take a look at MI Homes (MHO - Free Report) . MHO is a # 1 (Strong Buy) stock with a Value score of A.
MI Homes sports a P/B ratio of 1.12 as well; this compares to its industry's price-to-book ratio of 1.33. In the past 52 weeks, MHO's P/B has been as high as 1.21, as low as 0.51, with a median of 0.78.
These are only a few of the key metrics included in KB Home and MI Homes strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, KBH and MHO look like an impressive value stock at the moment.
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Are Investors Undervaluing KB Home (KBH) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
KB Home (KBH - Free Report) is a stock many investors are watching right now. KBH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.25, which compares to its industry's average of 8.29. Over the last 12 months, KBH's Forward P/E has been as high as 9.71 and as low as 2.68, with a median of 7.70.
We should also highlight that KBH has a P/B ratio of 1.04. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. KBH's current P/B looks attractive when compared to its industry's average P/B of 1.33. Over the past 12 months, KBH's P/B has been as high as 1.17 and as low as 0.63, with a median of 0.83.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. KBH has a P/S ratio of 0.56. This compares to its industry's average P/S of 0.69.
Finally, investors should note that KBH has a P/CF ratio of 5.12. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.66. Within the past 12 months, KBH's P/CF has been as high as 5.79 and as low as 2.80, with a median of 3.77.
If you're looking for another solid Building Products - Home Builders value stock, take a look at MI Homes (MHO - Free Report) . MHO is a # 1 (Strong Buy) stock with a Value score of A.
MI Homes sports a P/B ratio of 1.12 as well; this compares to its industry's price-to-book ratio of 1.33. In the past 52 weeks, MHO's P/B has been as high as 1.21, as low as 0.51, with a median of 0.78.
These are only a few of the key metrics included in KB Home and MI Homes strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, KBH and MHO look like an impressive value stock at the moment.