KB Home (KBH) Laps the Stock Market: Here's Why
KB Home (KBH) closed the latest trading day at $60.66, indicating a +1.15% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.06%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq gained 0.24%.
The homebuilder's shares have seen a decrease of 5.11% over the last month, not keeping up with the Construction sector's gain of 5.33% and the S&P 500's gain of 6.45%.
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 $1.56, marking a 7.59% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.45 billion, up 4.81% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.59 per share and revenue of $6.69 billion. These totals would mark changes of +7.97% and +4.35%, respectively, from last 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.77% higher. KB Home currently has a Zacks Rank of #3 (Hold).
With respect to valuation, KB Home is currently being traded at a Forward P/E ratio of 7.9. This represents a discount compared to its industry's average Forward P/E of 8.92.
We can additionally observe that KBH currently boasts a PEG ratio of 0.73. 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 Building Products - Home Builders industry currently had an average PEG ratio of 0.82 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 21, positioning it in the top 9% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
KB Home (KBH) : Free Stock Analysis Report
