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KB Home (KBH) Stock Sinks As Market Gains: What You Should Know

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KB Home (KBH - Free Report) closed at $53.23 in the latest trading session, marking a -1.43% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 1.65% for the day. Elsewhere, the Dow saw an upswing of 0.92%, while the tech-heavy Nasdaq appreciated by 3.07%.

Prior to today's trading, shares of the homebuilder had gained 19.81% outpaced the Construction sector's gain of 0.75% and the S&P 500's gain of 0.48%.

The investment community will be closely monitoring the performance of KB Home in its forthcoming earnings report. The company is scheduled to release its earnings on June 23, 2026. The company is expected to report EPS of $0.44, down 70.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.09 billion, down 28.72% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.1 per share and a revenue of $5.02 billion, indicating changes of -52.45% and -19.44%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for KB Home. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, KB Home boasts a Zacks Rank of #4 (Sell).

Investors should also note KB Home's current valuation metrics, including its Forward P/E ratio of 17.45. This valuation marks a premium compared to its industry average Forward P/E of 14.86.

It is also worth noting that KBH currently has a PEG ratio of 9.53. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 1.85 based on yesterday's closing prices.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 217, putting 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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