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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 $54.70 in the latest trading session, marking a +1.54% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.54%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, lost 0.84%.

Coming into today, shares of the homebuilder had gained 5.26% in the past month. In that same time, the Construction sector gained 15.13%, while the S&P 500 gained 8.62%.

The upcoming earnings release of KB Home will be of great interest to investors. The company is predicted to post an EPS of $1.67, indicating a 32.39% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.61 billion, down 17.11% from the year-ago period.

It's also important for investors to be aware of any recent modifications to analyst estimates for KB Home. Such recent modifications usually signify the changing landscape of near-term business trends. 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. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.31% lower. KB Home presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, KB Home is holding a Forward P/E ratio of 7.35. Its industry sports an average Forward P/E of 8.93, so one might conclude that KB Home is trading at a discount comparatively.

The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 93, placing it within the top 37% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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