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KB Home (KBH) Stock Drops Despite Market Gains: Important Facts to Note
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KB Home (KBH - Free Report) closed the most recent trading day at $48.42, moving -5.87% from the previous trading session. This move lagged the S&P 500's daily gain of 0.81%. Elsewhere, the Dow gained 0.73%, while the tech-heavy Nasdaq added 1.03%.
Heading into today, shares of the homebuilder had lost 6.33% over the past month, lagging the Construction sector's gain of 11.33% and the S&P 500's gain of 9.47%.
The investment community will be paying close attention to the earnings performance of KB Home in its upcoming release. On that day, KB Home is projected to report earnings of $0.44 per share, which would represent a year-over-year decline of 70.67%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.09 billion, indicating a 28.72% decrease compared to the same quarter of the previous year.
KBH's full-year Zacks Consensus Estimates are calling for earnings of $3.1 per share and revenue of $5.02 billion. These results would represent year-over-year changes of -52.45% and -19.44%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for KB Home. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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 past month, there's been a 12.91% fall in the Zacks Consensus EPS estimate. KB Home currently has a Zacks Rank of #5 (Strong Sell).
In terms of valuation, KB Home is currently trading at a Forward P/E ratio of 15.54. This signifies a premium in comparison to the average Forward P/E of 13.52 for its industry.
Investors should also note that KBH has a PEG ratio of 8.49 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 1.66.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 215, which puts it in the bottom 12% 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.
To follow KBH in the coming trading sessions, be sure to utilize Zacks.com.
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KB Home (KBH) Stock Drops Despite Market Gains: Important Facts to Note
KB Home (KBH - Free Report) closed the most recent trading day at $48.42, moving -5.87% from the previous trading session. This move lagged the S&P 500's daily gain of 0.81%. Elsewhere, the Dow gained 0.73%, while the tech-heavy Nasdaq added 1.03%.
Heading into today, shares of the homebuilder had lost 6.33% over the past month, lagging the Construction sector's gain of 11.33% and the S&P 500's gain of 9.47%.
The investment community will be paying close attention to the earnings performance of KB Home in its upcoming release. On that day, KB Home is projected to report earnings of $0.44 per share, which would represent a year-over-year decline of 70.67%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.09 billion, indicating a 28.72% decrease compared to the same quarter of the previous year.
KBH's full-year Zacks Consensus Estimates are calling for earnings of $3.1 per share and revenue of $5.02 billion. These results would represent year-over-year changes of -52.45% and -19.44%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for KB Home. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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 past month, there's been a 12.91% fall in the Zacks Consensus EPS estimate. KB Home currently has a Zacks Rank of #5 (Strong Sell).
In terms of valuation, KB Home is currently trading at a Forward P/E ratio of 15.54. This signifies a premium in comparison to the average Forward P/E of 13.52 for its industry.
Investors should also note that KBH has a PEG ratio of 8.49 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 1.66.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 215, which puts it in the bottom 12% 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.
To follow KBH in the coming trading sessions, be sure to utilize Zacks.com.