KB Home (KBH) closed the most recent trading day at $34.97, moving +0.2% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.4%, and the tech-heavy Nasdaq lost 0.51%.
Heading into today, shares of the homebuilder had lost 3.88% over the past month, lagging the Construction sector's gain of 2.3% and the S&P 500's gain of 4.7% in that time.
KBH will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.31, up 36.46% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.60 billion, up 18.54% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.86 per share and revenue of $4.59 billion, which would represent changes of +67.25% and +0.92%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for KBH. Recent revisions tend to reflect the latest 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 shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% higher. KBH is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, KBH is holding a Forward P/E ratio of 12.22. This valuation marks a premium compared to its industry's average Forward P/E of 10.73.
Investors should also note that KBH has a PEG ratio of 1.31 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 1.17 based on yesterday's closing prices.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 31, which puts it in the top 13% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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