Is KB Home (KBH) Stock Outpacing Its Construction Peers This Year?
The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. KB Home (KBH) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of KBH and the rest of the Construction group's stocks.
KB Home is one of 98 individual stocks in the Construction sector. Collectively, these companies sit at #1 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. KBH is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for KBH's full-year earnings has moved 11.44% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, KBH has returned 36.84% so far this year. At the same time, Construction stocks have gained an average of 21.94%. This means that KB Home is outperforming the sector as a whole this year.
Looking more specifically, KBH belongs to the Building Products - Home Builders industry, a group that includes 19 individual stocks and currently sits at #19 in the Zacks Industry Rank. On average, this group has gained an average of 20.62% so far this year, meaning that KBH is performing better in terms of year-to-date returns.
Going forward, investors interested in Construction stocks should continue to pay close attention to KBH as it looks to continue its solid performance.
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