The most recent trading session ended with KB Home (KBH – Free Report) standing at $65.72, reflecting a +0.21% shift from the previouse trading day’s closing. The stock’s performance was ahead of the S&P 500’s daily loss of 0.43%. Elsewhere, the Dow saw a downswing of 0.07%, while the tech-heavy Nasdaq depreciated by 0.9%.
Heading into today, shares of the homebuilder had lost 21.11% over the past month, lagging the Construction sector’s loss of 12.64% and the S&P 500’s loss of 1.98% in that time.
Analysts and investors alike will be keeping a close eye on the performance of KB Home in its upcoming earnings disclosure. The company’s earnings report is set to go public on January 9, 2025. The company is expected to report EPS of $2.45, up 32.43% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.99 billion, indicating a 19% growth compared to the corresponding quarter of the prior year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for KB Home. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 witnessed a 1.47% decrease. Currently, KB Home is carrying a Zacks Rank of #4 (Sell).
In the context of valuation, KB Home is at present trading with a Forward P/E ratio of 7.27. This indicates a discount in contrast to its industry’s Forward P/E of 7.9.
Also, we should mention that KBH has a PEG ratio of 0.56. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. The Building Products – Home Builders was holding an average PEG ratio of 0.66 at yesterday’s closing price.
The Building Products – Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 201, putting it in the bottom 20% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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