KB Home (KBH) Sees a More Significant Dip Than Broader Market: Some Facts to Know
The most recent trading session ended with KB Home (KBH) standing at $69.10, reflecting a -0.5% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 0.11%. On the other hand, the Dow registered a gain of 0.12%, and the technology-centric Nasdaq decreased by 0.41%.
Prior to today's trading, shares of the homebuilder had gained 14.04% over the past month. This has outpaced the Construction sector's gain of 8.1% and the S&P 500's gain of 2.7% in that time.
The investment community will be closely monitoring the performance of KB Home in its forthcoming earnings report. The company is scheduled to release its earnings on March 20, 2024. On that day, KB Home is projected to report earnings of $1.56 per share, which would represent year-over-year growth of 7.59%. Meanwhile, our latest consensus estimate is calling for revenue of $1.45 billion, up 4.81% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $7.59 per share and a revenue of $6.69 billion, demonstrating changes of +7.97% and +4.35%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for KB Home. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. KB Home currently has a Zacks Rank of #3 (Hold).
Investors should also note KB Home's current valuation metrics, including its Forward P/E ratio of 9.15. This valuation marks a discount compared to its industry's average Forward P/E of 9.5.
Investors should also note that KBH has a PEG ratio of 0.85 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 0.87 based on yesterday's closing prices.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 36, placing it within the top 15% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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KB Home (KBH) : Free Stock Analysis Report
