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KB Home (KBH) Stock Falls Amid Market Uptick: What Investors Need to Know

The most recent trading session ended with KB Home (KBH) standing at $69.24, reflecting a -1.79% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.03% for the day. Elsewhere, the Dow saw a downswing of 0.56%, while the tech-heavy Nasdaq appreciated by 0.59%.

Heading into today, shares of the homebuilder had gained 6.62% over the past month, outpacing the Construction sector's gain of 2.31% and the S&P 500's gain of 4.19% in that time.

The upcoming earnings release of KB Home will be of great interest to investors. The company is predicted to post an EPS of $1.79, indicating a 7.73% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.64 billion, down 7.1% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.01 per share and a revenue of $6.77 billion, signifying shifts of +13.94% and +5.55%, respectively, from the last year.

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Any recent changes to analyst estimates for KB Home should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, KB Home holds a Zacks Rank of #2 (Buy).

In the context of valuation, KB Home is at present trading with a Forward P/E ratio of 8.8. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 8.8.

Investors should also note that KBH has a PEG ratio of 0.8 right now. 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. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 0.8 based on yesterday's closing prices.

The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 17, this industry ranks in the top 7% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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KB Home (KBH) : Free Stock Analysis Report

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