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KB Home (KBH) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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In the latest close session, KB Home (KBH - Free Report) was down 3.92% at $50.20. The stock fell short of the S&P 500, which registered a loss of 0.58% for the day. Meanwhile, the Dow experienced a drop of 1.18%, and the technology-dominated Nasdaq saw a decrease of 0.32%.
Prior to today's trading, shares of the homebuilder had lost 7.55% was narrower than the Construction sector's loss of 7.66% and lagged the S&P 500's loss of 0.36%.
The upcoming earnings release of KB Home will be of great interest to investors. The company is expected to report EPS of $0.88, down 45.34% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.29 billion, down 20.14% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.3 per share and revenue of $5.09 billion, which would represent changes of -49.39% and -18.37%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for KB Home. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, the Zacks Consensus EPS estimate has remained steady. KB Home is currently a Zacks Rank #3 (Hold).
With respect to valuation, KB Home is currently being traded at a Forward P/E ratio of 15.85. This expresses a premium compared to the average Forward P/E of 13.59 of its industry.
We can also see that KBH currently has a PEG ratio of 2.68. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Building Products - Home Builders industry had an average PEG ratio of 2.68 as trading concluded yesterday.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 92, positioning it in the top 38% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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KB Home (KBH) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest close session, KB Home (KBH - Free Report) was down 3.92% at $50.20. The stock fell short of the S&P 500, which registered a loss of 0.58% for the day. Meanwhile, the Dow experienced a drop of 1.18%, and the technology-dominated Nasdaq saw a decrease of 0.32%.
Prior to today's trading, shares of the homebuilder had lost 7.55% was narrower than the Construction sector's loss of 7.66% and lagged the S&P 500's loss of 0.36%.
The upcoming earnings release of KB Home will be of great interest to investors. The company is expected to report EPS of $0.88, down 45.34% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.29 billion, down 20.14% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.3 per share and revenue of $5.09 billion, which would represent changes of -49.39% and -18.37%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for KB Home. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, the Zacks Consensus EPS estimate has remained steady. KB Home is currently a Zacks Rank #3 (Hold).
With respect to valuation, KB Home is currently being traded at a Forward P/E ratio of 15.85. This expresses a premium compared to the average Forward P/E of 13.59 of its industry.
We can also see that KBH currently has a PEG ratio of 2.68. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Building Products - Home Builders industry had an average PEG ratio of 2.68 as trading concluded yesterday.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 92, positioning it in the top 38% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.