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KB Home (KBH - Free Report) closed the most recent trading day at $85.03, moving +1.52% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.08%. At the same time, the Dow lost 0.12%, and the tech-heavy Nasdaq gained 0.07%.
The homebuilder's stock has climbed by 19.35% in the past month, exceeding the Construction sector's gain of 10.96% and the S&P 500's loss of 0.21%.
The investment community will be paying close attention to the earnings performance of KB Home in its upcoming release. On that day, KB Home is projected to report earnings of $2.04 per share, which would represent year-over-year growth of 13.33%. Meanwhile, our latest consensus estimate is calling for revenue of $1.73 billion, up 8.88% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.38 per share and a revenue of $6.84 billion, signifying shifts of +19.2% and +6.68%, respectively, from the last year.
Any recent changes to analyst estimates for KB Home should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.94% higher within the past month. Currently, KB Home is carrying a Zacks Rank of #2 (Buy).
From a valuation perspective, KB Home is currently exchanging hands at a Forward P/E ratio of 9.99. For comparison, its industry has an average Forward P/E of 9.88, which means KB Home is trading at a premium to the group.
It is also worth noting that KBH currently has a PEG ratio of 0.85. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KBH's industry had an average PEG ratio of 0.95 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 32, positioning it in the top 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the 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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Why KB Home (KBH) Outpaced the Stock Market Today
KB Home (KBH - Free Report) closed the most recent trading day at $85.03, moving +1.52% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.08%. At the same time, the Dow lost 0.12%, and the tech-heavy Nasdaq gained 0.07%.
The homebuilder's stock has climbed by 19.35% in the past month, exceeding the Construction sector's gain of 10.96% and the S&P 500's loss of 0.21%.
The investment community will be paying close attention to the earnings performance of KB Home in its upcoming release. On that day, KB Home is projected to report earnings of $2.04 per share, which would represent year-over-year growth of 13.33%. Meanwhile, our latest consensus estimate is calling for revenue of $1.73 billion, up 8.88% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.38 per share and a revenue of $6.84 billion, signifying shifts of +19.2% and +6.68%, respectively, from the last year.
Any recent changes to analyst estimates for KB Home should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.94% higher within the past month. Currently, KB Home is carrying a Zacks Rank of #2 (Buy).
From a valuation perspective, KB Home is currently exchanging hands at a Forward P/E ratio of 9.99. For comparison, its industry has an average Forward P/E of 9.88, which means KB Home is trading at a premium to the group.
It is also worth noting that KBH currently has a PEG ratio of 0.85. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KBH's industry had an average PEG ratio of 0.95 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 32, positioning it in the top 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the 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.