The latest trading session saw KB Home (KBH) ending at $54.27, denoting a +1.5% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 2.03%. At the same time, the Dow added 1.23%, and the tech-heavy Nasdaq gained 2.74%.
Heading into today, shares of the homebuilder had lost 9.54% over the past month, lagging the Construction sector's loss of 6.28% and the S&P 500's loss of 5.07% in that time.
Investors will be eagerly watching for the performance of KB Home in its upcoming earnings disclosure. In that report, analysts expect KB Home to post earnings of $1.57 per share. This would mark a year-over-year decline of 26.98%. In the meantime, our current consensus estimate forecasts the revenue to be $1.57 billion, indicating an 8.34% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.34 per share and revenue of $6.83 billion, which would represent changes of -13.14% and -1.49%, respectively, from the prior year.
Any recent changes to analyst estimates for KB Home should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been an 8.28% fall in the Zacks Consensus EPS estimate. KB Home is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, KB Home currently has a Forward P/E ratio of 7.28. This denotes a discount relative to the industry's average Forward P/E of 7.53.
It is also worth noting that KBH currently has a PEG ratio of 2.33. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Building Products - Home Builders industry held an average PEG ratio of 1.23.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 177, positioning it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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