KB Home (KBH) closed at $53.47 in the latest trading session, marking a -0.35% move from the prior day. The stock's change was less than the S&P 500's daily gain of 1.67%. Meanwhile, the Dow experienced a rise of 1.07%, and the technology-dominated Nasdaq saw an increase of 2.5%.
Coming into today, shares of the homebuilder had lost 8.38% in the past month. In that same time, the Construction sector lost 6.62%, while the S&P 500 lost 6.57%.
The investment community will be closely monitoring the performance of KB Home in its forthcoming earnings report. On that day, KB Home is projected to report earnings of $1.57 per share, which would represent a year-over-year decline of 26.98%. Simultaneously, our latest consensus estimate expects the revenue to be $1.57 billion, showing an 8.34% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.34 per share and a revenue of $6.83 billion, signifying shifts of -13.14% and -1.49%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for KB Home. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 11.88% lower within the past month. KB Home is holding a Zacks Rank of #4 (Sell) right now.
Looking at valuation, KB Home is presently trading at a Forward P/E ratio of 7.31. Its industry sports an average Forward P/E of 7.69, so one might conclude that KB Home is trading at a discount comparatively.
Meanwhile, KBH's PEG ratio is currently 2.33. 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. The average PEG ratio for the Building Products - Home Builders industry stood at 1.22 at the close of the market yesterday.
The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 176, finds itself in the bottom 30% 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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