Oppenheimer Begins Coverage of KB Home (KBH) Stock

KB Home (NYSE:KBH) is one of the Best Housing Stocks to Buy According to Hedge Funds. On September 3, Oppenheimer began coverage of the company’s stock with a “Perform” rating and no price target. The firm likes KB Home (NYSE:KBH)’s land strategy and believes that its build-to-order model possesses advantages over the long term. However, as per the analyst, the company’s market footprint and new approach about price over incentives are disadvantages in the current market. In Q2 2025, the company’s revenues came in at $1.53 billion as compared to $1.71 billion, while the average selling price rose marginally to $488,700.

In the current environment and considering KB Home (NYSE:KBH)’s robust existing land pipeline, it is scaling back the land acquisition and development investments, while increasing the share repurchases. In Q2 2025, KB Home (NYSE:KBH) repurchased $200 million of its outstanding common stock at an average price of ~$54 per share.

KB Home (NYSE:KBH) operates as a homebuilding company.

While we acknowledge the potential of KBH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now

Disclosure: None. This article is originally published at Insider Monkey.