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KB Home (KBH) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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KB Home (KBH - Free Report) closed the most recent trading day at $80.02, moving -1.14% from the previous trading session. This change lagged the S&P 500's daily loss of 0.16%. Meanwhile, the Dow experienced a rise of 0.09%, and the technology-dominated Nasdaq saw a decrease of 0.3%.

Heading into today, shares of the homebuilder had gained 0.85% over the past month, lagging the Construction sector's gain of 1.53% and the S&P 500's gain of 3.64% in that time.

The upcoming earnings release of KB Home will be of great interest to investors. The company's upcoming EPS is projected at $2.04, signifying a 13.33% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.73 billion, indicating an 8.88% increase compared to the same quarter of the previous year.

KBH's full-year Zacks Consensus Estimates are calling for earnings of $8.38 per share and revenue of $6.84 billion. These results would represent year-over-year changes of +19.2% and +6.68%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for KB Home. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. KB Home is currently sporting a Zacks Rank of #2 (Buy).

In the context of valuation, KB Home is at present trading with a Forward P/E ratio of 9.65. This represents a premium compared to its industry's average Forward P/E of 9.59.

Investors should also note that KBH has a PEG ratio of 0.82 right now. 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 industry had an average PEG ratio of 0.95 as trading concluded yesterday.

The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 18, this industry ranks in the top 8% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our 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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