KB Home (KBH) Dips More Than Broader Markets: What You Should Know
In the latest trading session, KB Home (KBH) closed at $30.86, marking a -0.16% move from the previous day. This change lagged the S&P 500's 0.03% loss on the day. Meanwhile, the Dow gained 0.45%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Heading into today, shares of the homebuilder had gained 7.33% over the past month, lagging the Construction sector's gain of 12.82% and outpacing the S&P 500's gain of 6.23% in that time.
Investors will be hoping for strength from KB Home as it approaches its next earnings release. The company is expected to report EPS of $2.85, up 49.21% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.99 billion, up 19.09% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.53 per share and revenue of $6.96 billion, which would represent changes of +57.52% and +21.55%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for KB Home. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. The Zacks Consensus EPS estimate has moved 0.38% lower within the past month. KB Home is holding a Zacks Rank of #5 (Strong Sell) right now.
Digging into valuation, KB Home currently has a Forward P/E ratio of 3.24. Its industry sports an average Forward P/E of 3.95, so we one might conclude that KB Home is trading at a discount comparatively.
It is also worth noting that KBH currently has a PEG ratio of 0.46. 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. The Building Products - Home Builders was holding an average PEG ratio of 0.93 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 236, which puts 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.
To follow KBH in the coming trading sessions, be sure to utilize Zacks.com.
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KB Home (KBH) : Free Stock Analysis Report
