KB Home (KBH) Suffers a Larger Drop Than the General Market: Key Insights
The latest trading session saw KB Home (KBH) ending at $67.86, denoting a -0.56% adjustment from its last day's close. This move lagged the S&P 500's daily loss of 0.12%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 0.41%.
Shares of the homebuilder witnessed a gain of 13.89% over the previous month, beating the performance of the Construction sector with its gain of 9.47% and the S&P 500's gain of 4.83%.
The upcoming earnings release of KB Home will be of great interest to investors. In that report, analysts expect KB Home to post earnings of $1.56 per share. This would mark year-over-year growth of 7.59%. At the same time, our most recent consensus estimate is projecting a revenue of $1.45 billion, reflecting a 4.81% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.59 per share and a revenue of $6.69 billion, signifying shifts of +7.97% and +4.35%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for KB Home. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, KB Home boasts a Zacks Rank of #2 (Buy).
In terms of valuation, KB Home is presently being traded at a Forward P/E ratio of 8.99. This signifies a discount in comparison to the average Forward P/E of 9.45 for its industry.
It is also worth noting that KBH currently has a PEG ratio of 0.83. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. KBH's industry had an average PEG ratio of 0.88 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 15, this industry ranks in the top 6% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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KB Home (KBH) : Free Stock Analysis Report
