KB Home (KBH) closed the latest trading day at $52.95, indicating a -0.15% change from the previous session's end. The stock exceeded the S&P 500, which registered a loss of 0.53% for the day. Meanwhile, the Dow experienced a drop of 0.26%, and the technology-dominated Nasdaq saw a decrease of 0.83%.
The homebuilder's shares have seen a decrease of 1.27% over the last month, not keeping up with the Construction sector's gain of 3.1% and the S&P 500's gain of 5.17%.
Market participants will be closely following the financial results of KB Home in its upcoming release. It is anticipated that the company will report an EPS of $1.45, marking a 32.56% fall compared to the same quarter of the previous 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.
Investors should also pay attention to any latest changes in analyst estimates for KB Home. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 4.11% lower. KB Home is currently a Zacks Rank #4 (Sell).
In terms of valuation, KB Home is currently trading at a Forward P/E ratio of 7.52. Its industry sports an average Forward P/E of 9.36, so one might conclude that KB Home is trading at a discount comparatively.
We can also see that KBH currently has a PEG ratio of 2.4. 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 average PEG ratio for the Building Products - Home Builders industry stood at 1.77 at the close of the market yesterday.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 226, placing it within the bottom 9% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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