In the latest trading session, KB Home (KBH) closed at $77.97, marking a +0.19% move from the previous day. Meanwhile, the Dow gained 0.32%, and the Nasdaq, a tech-heavy index, lost 0.11%.
Coming into today, shares of the homebuilder had lost 0.78% in the past month. In that same time, the Construction sector lost 1.37%, while the S&P 500 gained 0.97%.
Analysts and investors alike will be keeping a close eye on the performance of KB Home in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.47, showcasing a 33.51% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.99 billion, indicating a 19% upward movement from the same quarter last year.
KBH's full-year Zacks Consensus Estimates are calling for earnings of $8.44 per share and revenue of $6.92 billion. These results would represent year-over-year changes of +20.06% and +7.98%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for KB Home. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. The Zacks Consensus EPS estimate has moved 0.04% lower within the past month. Currently, KB Home is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, KB Home is holding a Forward P/E ratio of 9.22. This expresses a discount compared to the average Forward P/E of 9.4 of its industry.
It's also important to note that KBH currently trades at a PEG ratio of 0.66. 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 0.67 based on yesterday's closing prices.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
