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KB Home (KBH) Stock Moves -0.17%: What You Should Know

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The most recent trading session ended with KB Home (KBH - Free Report) standing at $65.58, reflecting a -0.17% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily loss of 1.07%. Elsewhere, the Dow lost 0.97%, while the tech-heavy Nasdaq lost 1.19%.

The homebuilder's stock has dropped by 20.61% in the past month, falling short of the Construction sector's loss of 11.47% and the S&P 500's loss of 0.36%.

Investors will be eagerly watching for the performance of KB Home in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on January 9, 2025. The company is expected to report EPS of $2.45, up 32.43% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.99 billion, showing a 19% escalation compared to the year-ago quarter.

Any recent changes to analyst estimates for KB Home should also be noted by investors. 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.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.47% lower. KB Home presently features a Zacks Rank of #4 (Sell).

Investors should also note KB Home's current valuation metrics, including its Forward P/E ratio of 7.28. This expresses a discount compared to the average Forward P/E of 7.91 of its industry.

One should further note that KBH currently holds a PEG ratio of 0.56. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Building Products - Home Builders industry had an average PEG ratio of 0.66 as trading concluded yesterday.

The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 197, finds itself in the bottom 22% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.


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