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KB Home (KBH) Rises Higher Than Market: Key Facts

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In the latest trading session, KB Home (KBH - Free Report) closed at $86.75, marking a +0.39% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.03%. Meanwhile, the Dow lost 0.04%, and the Nasdaq, a tech-heavy index, added 0.2%.

The homebuilder's shares have seen an increase of 6.27% over the last month, surpassing the Construction sector's gain of 5.35% and the S&P 500's gain of 1.54%.

Investors will be eagerly watching for the performance of KB Home in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on September 24, 2024. The company's earnings per share (EPS) are projected to be $2.04, reflecting a 13.33% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.73 billion, up 8.88% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.38 per share and revenue of $6.84 billion. These totals would mark changes of +19.2% and +6.68%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for KB Home. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, KB Home possesses a Zacks Rank of #3 (Hold).

Digging into valuation, KB Home currently has a Forward P/E ratio of 10.31. This expresses a discount compared to the average Forward P/E of 10.34 of its industry.

It is also worth noting that KBH currently has a PEG ratio of 0.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Building Products - Home Builders industry stood at 1.02 at the close of the market yesterday.

The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 42, this industry ranks in the top 17% 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.

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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