In the latest close session, KB Home (KBH) was up +2.43% at $65.82. The stock exceeded the S&P 500, which registered a gain of 0.3% for the day. At the same time, the Dow added 0.86%, and the tech-heavy Nasdaq gained 0.17%.
Coming into today, shares of the homebuilder had gained 5.52% in the past month. In that same time, the Construction sector lost 1.55%, while the S&P 500 lost 0.06%.
Investors will be eagerly watching for the performance of KB Home in its upcoming earnings disclosure. In that report, analysts expect KB Home to post earnings of $1.79 per share. This would mark a year-over-year decline of 28.97%. Our most recent consensus estimate is calling for quarterly revenue of $1.65 billion, down 17.59% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.39 per share and revenue of $6.19 billion, indicating changes of -24.38% and 0%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for KB Home. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the 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, 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, there's been no change in the Zacks Consensus EPS estimate. KB Home is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that KB Home has a Forward P/E ratio of 9.92 right now. Its industry sports an average Forward P/E of 12.14, so one might conclude that KB Home is trading at a discount comparatively.
Also, we should mention that KBH has a PEG ratio of 5.22. 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. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 1.89.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 213, which puts it in the bottom 14% of all 250+ industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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