KB Home (KBH) closed at $64.81 in the latest trading session, marking a -1.5% move from the prior day. This move lagged the S&P 500's daily loss of 0.28%. Meanwhile, the Dow experienced a drop of 0.54%, and the technology-dominated Nasdaq saw a decrease of 0.31%.
Coming into today, shares of the homebuilder had gained 6.73% in the past month. In that same time, the Construction sector gained 6.1%, while the S&P 500 lost 0.76%.
Analysts and investors alike will be keeping a close eye on the performance of KB Home in its upcoming earnings disclosure. On that day, KB Home is projected to report earnings of $0.53 per share, which would represent a year-over-year decline of 64.43%. Alongside, our most recent consensus estimate is anticipating revenue of $1.11 billion, indicating a 20.57% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.19 per share and a revenue of $5.59 billion, demonstrating changes of -35.74% and -10.38%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for KB Home. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.02% higher. KB Home is holding a Zacks Rank of #5 (Strong Sell) right now.
In the context of valuation, KB Home is at present trading with a Forward P/E ratio of 15.72. Its industry sports an average Forward P/E of 15.01, so one might conclude that KB Home is trading at a premium comparatively.
Also, we should mention that KBH has a PEG ratio of 8.59. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Building Products - Home Builders industry had an average PEG ratio of 2.25 as trading concluded yesterday.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 241, positioning it in the bottom 2% 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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