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

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In the latest market close, KB Home (KBH - Free Report) reached $79.47, with a +1.2% movement compared to the previous day. This move outpaced the S&P 500's daily loss of 0.61%. On the other hand, the Dow registered a loss of 0.54%, and the technology-centric Nasdaq decreased by 0.62%.

Shares of the homebuilder have depreciated by 4.46% over the course of the past month, underperforming the Construction sector's gain of 1.61% and the S&P 500's gain of 2.85%.

The investment community will be closely monitoring the performance of KB Home in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.45, marking a 32.43% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.99 billion, showing a 19% escalation compared to the year-ago quarter.

Investors should also take note of any recent adjustments to analyst estimates for KB Home. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.18% decrease. KB Home is currently a Zacks Rank #3 (Hold).

With respect to valuation, KB Home is currently being traded at a Forward P/E ratio of 8.68. This expresses a discount compared to the average Forward P/E of 9.28 of its industry.

We can additionally observe that KBH currently boasts a PEG ratio of 0.62. 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. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 0.71.

The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 75, positioning it in the top 30% 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.

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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