We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why KB Home (KBH) Gained But Lagged the Market Today
Read MoreHide Full Article
KB Home (KBH - Free Report) closed the latest trading day at $65.90, indicating a +0.06% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.73%. At the same time, the Dow added 0.16%, and the tech-heavy Nasdaq gained 0.98%.
Coming into today, shares of the homebuilder had lost 17.05% in the past month. In that same time, the Construction sector lost 8.04%, while the S&P 500 gained 0.34%.
Market participants will be closely following the financial results of KB Home in its upcoming release. The company plans to announce its earnings on January 9, 2025. The company's earnings per share (EPS) are projected to be $2.45, reflecting a 32.43% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.99 billion, up 19% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for KB Home. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.47% lower within the past month. KB Home is currently a Zacks Rank #4 (Sell).
Looking at valuation, KB Home is presently trading at a Forward P/E ratio of 7.3. For comparison, its industry has an average Forward P/E of 8.04, which means KB Home is trading at a discount to the group.
It's also important to note that KBH currently trades at a PEG ratio of 0.56. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 0.68.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why KB Home (KBH) Gained But Lagged the Market Today
KB Home (KBH - Free Report) closed the latest trading day at $65.90, indicating a +0.06% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.73%. At the same time, the Dow added 0.16%, and the tech-heavy Nasdaq gained 0.98%.
Coming into today, shares of the homebuilder had lost 17.05% in the past month. In that same time, the Construction sector lost 8.04%, while the S&P 500 gained 0.34%.
Market participants will be closely following the financial results of KB Home in its upcoming release. The company plans to announce its earnings on January 9, 2025. The company's earnings per share (EPS) are projected to be $2.45, reflecting a 32.43% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.99 billion, up 19% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for KB Home. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.47% lower within the past month. KB Home is currently a Zacks Rank #4 (Sell).
Looking at valuation, KB Home is presently trading at a Forward P/E ratio of 7.3. For comparison, its industry has an average Forward P/E of 8.04, which means KB Home is trading at a discount to the group.
It's also important to note that KBH currently trades at a PEG ratio of 0.56. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 0.68.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.