KB Home (KBH) closed the most recent trading day at $63.94, moving -1.65% from the previous trading session. This move lagged the S&P 500's daily gain of 0.49%. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq appreciated by 0.72%.
The stock of homebuilder has risen by 7.31% in the past month, leading the Construction sector's gain of 0.54% and the S&P 500's gain of 2.99%.
The investment community will be closely monitoring the performance of KB Home in its forthcoming earnings report. The company is scheduled to release its earnings on September 24, 2025. The company is forecasted to report an EPS of $1.5, showcasing a 26.47% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.6 billion, indicating a 8.91% downward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.48 per share and a revenue of $6.4 billion, signifying shifts of -23.31% and -7.63%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for KB Home. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.13% lower within the past month. Currently, KB Home is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, KB Home is at present trading with a Forward P/E ratio of 10.04. This denotes a discount relative to the industry average Forward P/E of 11.9.
It's also important to note that KBH currently trades at a PEG ratio of 5.28. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 2.55 based on yesterday's closing prices.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 232, positioning it in the bottom 7% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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KB Home (KBH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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