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Here's Why KB Home (KBH) Fell More Than Broader Market
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In the latest close session, KB Home (KBH - Free Report) was down 1.29% at $62.73. This change lagged the S&P 500's 0.69% loss on the day. Meanwhile, the Dow lost 0.55%, and the Nasdaq, a tech-heavy index, lost 0.82%.
The stock of homebuilder has risen by 9.31% in the past month, leading the Construction sector's gain of 5.26% and the S&P 500's gain of 3.79%.
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 $1.56, marking a 23.53% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.61 billion, down 8.05% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.55 per share and a revenue of $6.41 billion, representing changes of -22.49% and -7.52%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for KB Home. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. KB Home is currently sporting a Zacks Rank of #4 (Sell).
From a valuation perspective, KB Home is currently exchanging hands at a Forward P/E ratio of 9.7. This represents a discount compared to its industry average Forward P/E of 11.64.
It's also important to note that KBH currently trades at a PEG ratio of 5.11. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 2.56 based on yesterday's closing prices.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 234, which puts it in the bottom 6% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Here's Why KB Home (KBH) Fell More Than Broader Market
In the latest close session, KB Home (KBH - Free Report) was down 1.29% at $62.73. This change lagged the S&P 500's 0.69% loss on the day. Meanwhile, the Dow lost 0.55%, and the Nasdaq, a tech-heavy index, lost 0.82%.
The stock of homebuilder has risen by 9.31% in the past month, leading the Construction sector's gain of 5.26% and the S&P 500's gain of 3.79%.
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 $1.56, marking a 23.53% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.61 billion, down 8.05% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.55 per share and a revenue of $6.41 billion, representing changes of -22.49% and -7.52%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for KB Home. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. KB Home is currently sporting a Zacks Rank of #4 (Sell).
From a valuation perspective, KB Home is currently exchanging hands at a Forward P/E ratio of 9.7. This represents a discount compared to its industry average Forward P/E of 11.64.
It's also important to note that KBH currently trades at a PEG ratio of 5.11. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 2.56 based on yesterday's closing prices.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 234, which puts it in the bottom 6% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.