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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 at $52.16 in the latest trading session, marking a -2.47% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 1.62% for the day. Elsewhere, the Dow saw a downswing of 1.87%, while the tech-heavy Nasdaq depreciated by 1.98%.

Shares of the homebuilder have appreciated by 13.96% over the course of the past month, outperforming the Construction sector's loss of 1.1%, and the S&P 500's loss of 0.03%.

Analysts and investors alike will be keeping a close eye on the performance of KB Home in its upcoming earnings disclosure. The company's earnings report is set to go public on June 23, 2026. The company's upcoming EPS is projected at $0.44, signifying a 70.67% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.09 billion, indicating a 28.72% downward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.1 per share and revenue of $5.02 billion, indicating changes of -52.45% and -19.44%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for KB Home. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. KB Home is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, KB Home currently has a Forward P/E ratio of 17.28. Its industry sports an average Forward P/E of 14.39, so one might conclude that KB Home is trading at a premium comparatively.

We can additionally observe that KBH currently boasts a PEG ratio of 9.44. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. KBH's industry had an average PEG ratio of 1.88 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 227, which puts it in the bottom 7% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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