Back to top

Image: Bigstock

Is KB Home (KBH) Outperforming Other Construction Stocks This Year?

Read MoreHide Full Article

The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is KB Home (KBH - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

KB Home is one of 99 individual stocks in the Construction sector. Collectively, these companies sit at #1 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. KB Home is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for KBH's full-year earnings has moved 19.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that KBH has returned about 59.5% since the start of the calendar year. Meanwhile, stocks in the Construction group have gained about 32.5% on average. This means that KB Home is outperforming the sector as a whole this year.

M.D.C. Holdings, Inc. is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 50.2%.

Over the past three months, M.D.C. Holdings, Inc.'s consensus EPS estimate for the current year has increased 41.3%. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, KB Home is a member of the Building Products - Home Builders industry, which includes 19 individual companies and currently sits at #4 in the Zacks Industry Rank. On average, stocks in this group have gained 46.2% this year, meaning that KBH is performing better in terms of year-to-date returns. M.D.C. Holdings, Inc. is also part of the same industry.

Investors interested in the Construction sector may want to keep a close eye on KB Home and M.D.C. Holdings, Inc. as they attempt to continue their solid performance.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


KB Home (KBH) - free report >>

Published in