In the latest trading session, KB Home (KBH) closed at $55.92, marking a -2.51% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.21%. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, added 0.01%.
Shares of the homebuilder have depreciated by 5.16% over the course of the past month, outperforming the Construction sector's loss of 6.9%, and lagging the S&P 500's loss of 2.26%.
Investors will be eagerly watching for the performance of KB Home in its upcoming earnings disclosure. The company is expected to report EPS of $0.52, down 65.1% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.11 billion, showing a 20.57% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.11 per share and revenue of $5.59 billion, which would represent changes of -36.96% and -10.38%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for KB Home. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.78% lower. At present, KB Home boasts a Zacks Rank of #4 (Sell).
With respect to valuation, KB Home is currently being traded at a Forward P/E ratio of 13.95. This signifies a premium in comparison to the average Forward P/E of 12.93 for its industry.
Investors should also note that KBH has a PEG ratio of 7.62 right now. 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 1.52.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 240, this industry ranks in the bottom 3% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow KBH in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
KB Home (KBH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
