KB Home (KBH) closed the most recent trading day at $53.96, moving -1.98% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.32%, and the Nasdaq, a tech-heavy index, added 0.02%.
Coming into today, shares of the homebuilder had gained 6.54% in the past month. In that same time, the Construction sector gained 17.05%, while the S&P 500 gained 13.05%.
The upcoming earnings release of KB Home will be of great interest to investors. The company is forecasted to report an EPS of $1.45, showcasing a 32.56% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $1.5 billion, down 12.55% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.05 per share and revenue of $6.64 billion, indicating changes of -16.57% and -4.11%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for KB Home. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.94% downward. Right now, KB Home possesses a Zacks Rank of #4 (Sell).
Digging into valuation, KB Home currently has a Forward P/E ratio of 7.8. This represents a discount compared to its industry's average Forward P/E of 9.88.
Meanwhile, KBH's PEG ratio is currently 2.49. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 1.82 based on yesterday's closing prices.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 231, putting it in the bottom 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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KB Home (KBH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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