Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, KB Home (KBH - Free Report) closed at $22.99, marking a -1.42% move from the previous day. This move lagged the S&P 500's daily gain of 9.28%. Elsewhere, the Dow gained 9.36%, while the tech-heavy Nasdaq added 9.34%.

Coming into today, shares of the homebuilder had lost 40.92% in the past month. In that same time, the Construction sector lost 31.22%, while the S&P 500 lost 26.56%.

KBH will be looking to display strength as it nears its next earnings release, which is expected to be March 26, 2020. In that report, analysts expect KBH to post earnings of $0.43 per share. This would mark year-over-year growth of 38.71%. Our most recent consensus estimate is calling for quarterly revenue of $949.93 million, up 17.06% from the year-ago period.

KBH's full-year Zacks Consensus Estimates are calling for earnings of $3.64 per share and revenue of $5.21 billion. These results would represent year-over-year changes of +27.72% and +14.35%, respectively.

It is also important to note the recent changes to analyst estimates for KBH. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1% lower. KBH is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, KBH is holding a Forward P/E ratio of 6.4. This represents a discount compared to its industry's average Forward P/E of 6.88.

We can also see that KBH currently has a PEG ratio of 0.59. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Home Builders was holding an average PEG ratio of 0.66 at yesterday's closing price.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 20, which puts it in the top 8% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


KB Home (KBH) - free report >>

Published in