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KB Home (KBH) Stock Drops Despite Market Gains: Important Facts to Note
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In the latest market close, KB Home (KBH - Free Report) reached $56.08, with a -1.01% movement compared to the previous day. This move lagged the S&P 500's daily gain of 0.39%. On the other hand, the Dow registered a gain of 0.43%, and the technology-centric Nasdaq increased by 0.2%.
The homebuilder's stock has climbed by 10.82% in the past month, falling short of the Construction sector's gain of 12.48% and outpacing the S&P 500's gain of 5.28%.
The upcoming earnings release of KB Home will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.67, reflecting a 32.39% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.61 billion, indicating a 17.11% decline compared to the corresponding quarter of the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for KB Home. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.31% lower within the past month. Right now, KB Home possesses a Zacks Rank of #3 (Hold).
In terms of valuation, KB Home is presently being traded at a Forward P/E ratio of 7.73. This indicates a discount in contrast to its industry's Forward P/E of 9.52.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
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KB Home (KBH) Stock Drops Despite Market Gains: Important Facts to Note
In the latest market close, KB Home (KBH - Free Report) reached $56.08, with a -1.01% movement compared to the previous day. This move lagged the S&P 500's daily gain of 0.39%. On the other hand, the Dow registered a gain of 0.43%, and the technology-centric Nasdaq increased by 0.2%.
The homebuilder's stock has climbed by 10.82% in the past month, falling short of the Construction sector's gain of 12.48% and outpacing the S&P 500's gain of 5.28%.
The upcoming earnings release of KB Home will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.67, reflecting a 32.39% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.61 billion, indicating a 17.11% decline compared to the corresponding quarter of the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for KB Home. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.31% lower within the past month. Right now, KB Home possesses a Zacks Rank of #3 (Hold).
In terms of valuation, KB Home is presently being traded at a Forward P/E ratio of 7.73. This indicates a discount in contrast to its industry's Forward P/E of 9.52.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.