KB Home (KBH) closed the most recent trading day at $55.16, moving -3.01% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.13%. Elsewhere, the Dow saw a downswing of 0.39%, while the tech-heavy Nasdaq appreciated by 0.15%.
Shares of the homebuilder witnessed a gain of 2.73% over the previous month, trailing the performance of the Construction sector with its gain of 6.66%, and the S&P 500's gain of 3.39%.
Market participants will be closely following the financial results of KB Home in its upcoming release. The company's earnings per share (EPS) are projected to be $1.56, reflecting a 23.53% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.61 billion, indicating a 8.05% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.55 per share and a revenue of $6.41 billion, indicating changes of -22.49% and -7.52%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for KB Home. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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.
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 past month, the Zacks Consensus EPS estimate has moved 3.36% lower. KB Home is currently a Zacks Rank #5 (Strong Sell).
From a valuation perspective, KB Home is currently exchanging hands at a Forward P/E ratio of 8.68. This represents a discount compared to its industry average Forward P/E of 10.22.
It is also worth noting that KBH currently has a PEG ratio of 4.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 2.24.
The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 216, finds itself in the bottom 13% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
KB Home (KBH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
