KB Home (KBH) closed at $38.75 in the latest trading session, marking a -0.77% move from the prior day. This change lagged the S&P 500's daily gain of 0.65%. At the same time, the Dow added 0.94%, and the tech-heavy Nasdaq gained 0.9%.
Heading into today, shares of the homebuilder had gained 8.17% over the past month, outpacing the Construction sector's gain of 2.97% and the S&P 500's gain of 2.97% in that time.
Wall Street will be looking for positivity from KBH as it approaches its next earnings report date. The company is expected to report EPS of $0.44, up 41.94% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $949.93 million, up 17.06% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.68 per share and revenue of $5.21 billion. These totals would mark changes of +29.12% and +14.52%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for KBH. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.09% higher. KBH is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, KBH currently has a Forward P/E ratio of 10.62. This represents a discount compared to its industry's average Forward P/E of 11.1.
Also, we should mention that KBH has a PEG ratio of 0.98. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Home Builders was holding an average PEG ratio of 1.07 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 39, putting it in the top 16% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.