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KB Home (KBH) Suffers a Larger Drop Than the General Market: Key Insights
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KB Home (KBH - Free Report) closed the most recent trading day at $54.45, moving -1.75% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.49%. At the same time, the Dow lost 0.05%, and the tech-heavy Nasdaq lost 0.9%.
Shares of the homebuilder witnessed a gain of 9.72% over the previous month, trailing the performance of the Construction sector with its gain of 13.24%, and the S&P 500's gain of 12.8%.
Investors will be eagerly watching for the performance of KB Home in its upcoming earnings disclosure. In that report, analysts expect KB Home to post earnings of $0.44 per share. This would mark a year-over-year decline of 70.67%. At the same time, our most recent consensus estimate is projecting a revenue of $1.09 billion, reflecting a 28.72% fall from the equivalent quarter last year.
KBH's full-year Zacks Consensus Estimates are calling for earnings of $3.13 per share and revenue of $5.02 billion. These results would represent year-over-year changes of -51.99% and -19.44%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for KB Home. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 11.85% downward. As of now, KB Home holds a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, KB Home is currently exchanging hands at a Forward P/E ratio of 17.69. Its industry sports an average Forward P/E of 15.17, so one might conclude that KB Home is trading at a premium comparatively.
Also, we should mention that KBH has a PEG ratio of 9.67. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 2.23.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 215, positioning it in the bottom 12% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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KB Home (KBH) Suffers a Larger Drop Than the General Market: Key Insights
KB Home (KBH - Free Report) closed the most recent trading day at $54.45, moving -1.75% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.49%. At the same time, the Dow lost 0.05%, and the tech-heavy Nasdaq lost 0.9%.
Shares of the homebuilder witnessed a gain of 9.72% over the previous month, trailing the performance of the Construction sector with its gain of 13.24%, and the S&P 500's gain of 12.8%.
Investors will be eagerly watching for the performance of KB Home in its upcoming earnings disclosure. In that report, analysts expect KB Home to post earnings of $0.44 per share. This would mark a year-over-year decline of 70.67%. At the same time, our most recent consensus estimate is projecting a revenue of $1.09 billion, reflecting a 28.72% fall from the equivalent quarter last year.
KBH's full-year Zacks Consensus Estimates are calling for earnings of $3.13 per share and revenue of $5.02 billion. These results would represent year-over-year changes of -51.99% and -19.44%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for KB Home. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 11.85% downward. As of now, KB Home holds a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, KB Home is currently exchanging hands at a Forward P/E ratio of 17.69. Its industry sports an average Forward P/E of 15.17, so one might conclude that KB Home is trading at a premium comparatively.
Also, we should mention that KBH has a PEG ratio of 9.67. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 2.23.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 215, positioning it in the bottom 12% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.