KB Home (KBH) ended the recent trading session at $53.42, demonstrating a -2.41% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.27%.
Heading into today, shares of the homebuilder had lost 2.25% lagging the Construction sector's gain of 3.59% and the S&P 500's gain of 6.9%.
Analysts and investors alike will be keeping a close eye on the performance of KB Home in its upcoming earnings disclosure. The company's earnings report is set to go public on June 23, 2025. The company is expected to report EPS of $1.45, down 32.56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.5 billion, down 12.55% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $7.05 per share and a revenue of $6.64 billion, demonstrating changes of -16.57% and -4.11%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for KB Home. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 past month, there's been no change in the Zacks Consensus EPS estimate. KB Home is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, KB Home is presently being traded at a Forward P/E ratio of 7.76. This denotes a discount relative to the industry average Forward P/E of 9.77.
We can additionally observe that KBH currently boasts a PEG ratio of 2.48. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Home Builders industry currently had an average PEG ratio of 1.82 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 220, finds itself in the bottom 11% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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