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KB Home (KBH) Gains But Lags Market: What You Should Know
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In the latest trading session, KB Home (KBH - Free Report) closed at $47.93, marking a +0.04% move from the previous day. The stock lagged the S&P 500's daily gain of 0.63%. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 0.84%.
Heading into today, shares of the homebuilder had lost 11.77% over the past month, lagging the Construction sector's loss of 3.92% and the S&P 500's loss of 3.37% in that time.
Investors will be hoping for strength from KB Home as it approaches its next earnings release. The company is expected to report EPS of $1.37, down 52.1% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.46 billion, down 21.05% from the year-ago period.
KBH's full-year Zacks Consensus Estimates are calling for earnings of $6.29 per share and revenue of $6.11 billion. These results would represent year-over-year changes of -31.03% and -11.46%, respectively.
Any recent changes to analyst estimates for KB Home should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. KB Home is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, KB Home is currently trading at a Forward P/E ratio of 7.62. This represents a discount compared to its industry's average Forward P/E of 8.72.
Also, we should mention that KBH has a PEG ratio of 1.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Home Builders was holding an average PEG ratio of 0.73 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 4, putting it in the top 2% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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KB Home (KBH) Gains But Lags Market: What You Should Know
In the latest trading session, KB Home (KBH - Free Report) closed at $47.93, marking a +0.04% move from the previous day. The stock lagged the S&P 500's daily gain of 0.63%. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 0.84%.
Heading into today, shares of the homebuilder had lost 11.77% over the past month, lagging the Construction sector's loss of 3.92% and the S&P 500's loss of 3.37% in that time.
Investors will be hoping for strength from KB Home as it approaches its next earnings release. The company is expected to report EPS of $1.37, down 52.1% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.46 billion, down 21.05% from the year-ago period.
KBH's full-year Zacks Consensus Estimates are calling for earnings of $6.29 per share and revenue of $6.11 billion. These results would represent year-over-year changes of -31.03% and -11.46%, respectively.
Any recent changes to analyst estimates for KB Home should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. KB Home is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, KB Home is currently trading at a Forward P/E ratio of 7.62. This represents a discount compared to its industry's average Forward P/E of 8.72.
Also, we should mention that KBH has a PEG ratio of 1.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Home Builders was holding an average PEG ratio of 0.73 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 4, putting it in the top 2% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.