Back to top

Image: Bigstock

KB Home (KBH) Laps the Stock Market: Here's Why

Read MoreHide Full Article

KB Home (KBH - Free Report) closed the latest trading day at $53.95, indicating a +0.54% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.12%. On the other hand, the Dow registered a loss of 0.13%, and the technology-centric Nasdaq increased by 0.07%.

Coming into today, shares of the homebuilder had gained 23.58% in the past month. In that same time, the Construction sector gained 9.12%, while the S&P 500 gained 4.23%.

Market participants will be closely following the financial results of KB Home in its upcoming release. It is anticipated that the company will report an EPS of $1.69, marking a 31.58% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.61 billion, showing a 17.19% drop compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.92 per share and a revenue of $6.34 billion, signifying shifts of -24.12% and -8.18%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for KB Home. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 remained stagnant. KB Home currently has a Zacks Rank of #2 (Buy).

Digging into valuation, KB Home currently has a Forward P/E ratio of 7.76. This signifies a discount in comparison to the average Forward P/E of 8.67 for its industry.

The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 62, this industry ranks in the top 25% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


See More Zacks Research for These Tickers


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


KB Home (KBH) - free report >>

Published in