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KB Home (KBH) Increases Despite Market Slip: Here's What You Need to Know

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KB Home (KBH - Free Report) closed at $82.86 in the latest trading session, marking a +0.22% move from the prior day. This change outpaced the S&P 500's 0.38% loss on the day. Meanwhile, the Dow experienced a drop of 0.31%, and the technology-dominated Nasdaq saw a decrease of 0.59%.

Heading into today, shares of the homebuilder had gained 5.39% over the past month, lagging the Construction sector's gain of 7.07% and outpacing the S&P 500's gain of 3.76% in that time.

Investors will be eagerly watching for the performance of KB Home in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.47, signifying a 33.51% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.99 billion, up 19% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.44 per share and a revenue of $6.92 billion, signifying shifts of +20.06% and +7.98%, respectively, from the last year.

It is also important to note the recent changes 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. The Zacks Consensus EPS estimate has moved 0.04% lower within the past month. KB Home is currently a Zacks Rank #3 (Hold).

Digging into valuation, KB Home currently has a Forward P/E ratio of 9.8. This represents a discount compared to its industry's average Forward P/E of 9.96.

One should further note that KBH currently holds a PEG ratio of 0.71. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. KBH's industry had an average PEG ratio of 0.75 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 129, putting it in the bottom 49% of all 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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