KB Home (KBH) closed at $64.78 in the latest trading session, marking a +1.58% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.69%. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, added 0.82%.
The homebuilder's stock has dropped by 0.08% in the past month, exceeding the Construction sector's loss of 3.09% and the S&P 500's loss of 0.31%.
The investment community will be closely monitoring the performance of KB Home in its forthcoming earnings report. In that report, analysts expect KB Home to post earnings of $1.53 per share. This would mark a year-over-year decline of 25%.
KBH's full-year Zacks Consensus Estimates are calling for earnings of $6.39 per share and revenue of $6.19 billion. These results would represent year-over-year changes of -24.38% and -10.68%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for KB Home. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. KB Home is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note KB Home's current valuation metrics, including its Forward P/E ratio of 9.98. This represents a discount compared to its industry average Forward P/E of 12.26.
It's also important to note that KBH currently trades at a PEG ratio of 5.25. 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. The Building Products - Home Builders industry currently had an average PEG ratio of 1.84 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 215, this industry ranks in the bottom 13% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the 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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