KB Home (KBH) closed at $61.69 in the latest trading session, marking a -1.12% move from the prior day. This move lagged the S&P 500's daily loss of 0.09%. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq gained 0.13%.
Heading into today, shares of the homebuilder had gained 2.35% over the past month, outpacing the Construction sector's gain of 0.79% and the S&P 500's gain of 1.89%.
The upcoming earnings release of KB Home will be of great interest to investors. The company's earnings report is expected on December 18, 2025. It is anticipated that the company will report an EPS of $1.79, marking a 28.97% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.65 billion, indicating a 17.59% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.39 per share and revenue of $6.19 billion, which would represent changes of -24.38% and 0%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for KB Home. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.13% lower. Right now, KB Home possesses a Zacks Rank of #4 (Sell).
From a valuation perspective, KB Home is currently exchanging hands at a Forward P/E ratio of 9.64. This signifies a discount in comparison to the average Forward P/E of 11.92 for its industry.
Meanwhile, KBH's PEG ratio is currently 5.07. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Building Products - Home Builders industry held an average PEG ratio of 1.82.
The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 207, finds itself in the bottom 17% echelons 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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