Back to top

Image: Bigstock

KB Home (KBH) Stock Dips While Market Gains: Key Facts

Read MoreHide Full Article

KB Home (KBH - Free Report) closed the most recent trading day at $82.74, moving -0.47% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.05% for the day. Meanwhile, the Dow experienced a drop of 0.17%, and the technology-dominated Nasdaq saw an increase of 0.4%.

Shares of the homebuilder witnessed a gain of 4.3% over the previous month, trailing the performance of the Construction sector with its gain of 7.86% and the S&P 500's gain of 5.75%.

Market participants will be closely following the financial results of KB Home in its upcoming release. It is anticipated that the company will report an EPS of $2.47, marking a 33.51% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.99 billion, indicating a 19% upward movement from the same quarter last year.

Any recent changes to analyst estimates for KB Home should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.67% fall in the Zacks Consensus EPS estimate. As of now, KB Home holds a Zacks Rank of #3 (Hold).

With respect to valuation, KB Home is currently being traded at a Forward P/E ratio of 9.08. This valuation marks a discount compared to its industry's average Forward P/E of 10.03.

Meanwhile, KBH's PEG ratio is currently 0.65. 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 0.76 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 126, positioning it in the top 50% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


KB Home (KBH) - free report >>

Published in