KB Home (KBH) Stock Slides as Market Rises: Facts to Know Before You Trade
The latest trading session saw KB Home (KBH) ending at $59.92, denoting a -1.48% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 1.07%. Meanwhile, the Dow experienced a rise of 0.35%, and the technology-dominated Nasdaq saw an increase of 1.74%.
Prior to today's trading, shares of the homebuilder had lost 0.13% over the past month. This has lagged the Construction sector's gain of 0.85% and the S&P 500's gain of 2.93% in that time.
The investment community will be closely monitoring the performance of KB Home in its forthcoming earnings report. The company is forecasted to report an EPS of $1.56, showcasing a 7.59% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.45 billion, indicating a 4.81% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.59 per share and revenue of $6.69 billion, which would represent changes of +7.97% and +4.35%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for KB Home. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has moved 5.17% higher. KB Home is currently a Zacks Rank #3 (Hold).
With respect to valuation, KB Home is currently being traded at a Forward P/E ratio of 8.02. This valuation marks a discount compared to its industry's average Forward P/E of 9.83.
We can additionally observe that KBH currently boasts a PEG ratio of 0.74. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Building Products - Home Builders industry currently had an average PEG ratio of 0.84 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 43, which puts it in the top 18% of all 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.
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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KB Home (KBH) : Free Stock Analysis Report
