Back to top

Image: Bigstock

KB Home (KBH) Suffers a Larger Drop Than the General Market: Key Insights

Read MoreHide Full Article

In the latest trading session, KB Home (KBH - Free Report) closed at $48.67, marking a -1.72% move from the previous day. This move lagged the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 1.21%, and the Nasdaq, a tech-heavy index, lost 0.01%.

Coming into today, shares of the homebuilder had lost 8.25% in the past month. In that same time, the Construction sector lost 11.29%, while the S&P 500 lost 2.43%.

The upcoming earnings release of KB Home will be of great interest to investors. The company's earnings report is expected on September 22, 2026. The company is forecasted to report an EPS of $0.88, showcasing a 45.34% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.29 billion, indicating a 20.21% decline compared to the corresponding quarter of the prior year.

KBH's full-year Zacks Consensus Estimates are calling for earnings of $3.27 per share and revenue of $5.07 billion. These results would represent year-over-year changes of -49.85% and -18.65%, respectively.

Investors should also note any recent changes to analyst estimates for KB Home. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.74% decrease. KB Home currently has a Zacks Rank of #4 (Sell).

Looking at valuation, KB Home is presently trading at a Forward P/E ratio of 15.14. This signifies a premium in comparison to the average Forward P/E of 13.32 for its industry.

Meanwhile, KBH's PEG ratio is currently 2.56. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Home Builders was holding an average PEG ratio of 2.56 at yesterday's closing price.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 208, putting it in the bottom 16% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Published in