KB Home (KBH) closed at $60.94 in the latest trading session, marking a -1.09% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 1.97%. Elsewhere, the Dow gained 2.47%, while the tech-heavy Nasdaq added 2.18%.
The homebuilder's shares have seen an increase of 6.94% over the last month, not keeping up with the Construction sector's gain of 7.04% and outstripping the S&P 500's loss of 1.49%.
Market participants will be closely following the financial results of KB Home in its upcoming release. It is anticipated that the company will report an EPS of $0.53, marking a 64.43% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.11 billion, down 20.57% from the year-ago period.
KBH's full-year Zacks Consensus Estimates are calling for earnings of $4.19 per share and revenue of $5.59 billion. These results would represent year-over-year changes of -35.74% and -10.38%, respectively.
Investors should also note any recent changes to analyst estimates for KB Home. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.47% upward. Currently, KB Home is carrying a Zacks Rank of #5 (Strong Sell).
In the context of valuation, KB Home is at present trading with a Forward P/E ratio of 14.72. This indicates a premium in contrast to its industry's Forward P/E of 13.93.
One should further note that KBH currently holds a PEG ratio of 8.04. 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 of the close of trade yesterday, the Building Products - Home Builders industry held an average PEG ratio of 2.14.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 241, putting it in the bottom 2% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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