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KB Home (KBH) Rises As Market Takes a Dip: Key Facts

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KB Home (KBH - Free Report) closed at $59.27 in the latest trading session, marking a +1.94% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 0.49%. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.65%.

Heading into today, shares of the homebuilder had gained 10.15% over the past month, outpacing the Construction sector's gain of 2.75% and the S&P 500's gain of 0.96%.

Analysts and investors alike will be keeping a close eye on the performance of KB Home in its upcoming earnings disclosure. The company is expected to report EPS of $1.56, down 23.53% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.61 billion, down 8.05% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.55 per share and a revenue of $6.41 billion, indicating changes of -22.49% and -7.52%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for KB Home. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, there's been a 1.92% fall in the Zacks Consensus EPS estimate. KB Home is currently sporting a Zacks Rank of #5 (Strong Sell).

With respect to valuation, KB Home is currently being traded at a Forward P/E ratio of 8.88. This valuation marks a discount compared to its industry average Forward P/E of 11.1.

Also, we should mention that KBH has a PEG ratio of 4.67. 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 average PEG ratio for the Building Products - Home Builders industry stood at 2.28 at the close of the market yesterday.

The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 227, placing it within the bottom 9% of over 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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