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KB Home (KBH) Rises Yet Lags Behind Market: Some Facts Worth Knowing August 15, 2024
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KB Home (KBH - Free Report) closed the latest trading day at $79.92, indicating a +1.05% change from the previous session's end. This move lagged the S&P 500's daily gain of 1.61%. Meanwhile, the Dow experienced a rise of 1.39%, and the technology-dominated Nasdaq saw an increase of 2.34%.
The homebuilder's stock has dropped by 2.02% in the past month, falling short of the Construction sector's gain of 2.06% and outpacing the S&P 500's loss of 2.88%.
The upcoming earnings release of KB Home will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.04, reflecting a 13.33% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.73 billion, showing an 8.88% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.38 per share and revenue of $6.84 billion. These totals would mark changes of +19.2% and +6.68%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for KB Home. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 0.94% higher within the past month. Right now, KB Home possesses a Zacks Rank of #2 (Buy).
Digging into valuation, KB Home currently has a Forward P/E ratio of 9.43. This signifies a premium in comparison to the average Forward P/E of 8.94 for its industry.
Meanwhile, KBH's PEG ratio is currently 0.8. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Building Products - Home Builders industry stood at 0.88 at the close of the market yesterday.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% of all 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.
To follow KBH in the coming trading sessions, be sure to utilize Zacks.com.
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KB Home (KBH - Free Report) closed the latest trading day at $79.92, indicating a +1.05% change from the previous session's end. This move lagged the S&P 500's daily gain of 1.61%. Meanwhile, the Dow experienced a rise of 1.39%, and the technology-dominated Nasdaq saw an increase of 2.34%.
The homebuilder's stock has dropped by 2.02% in the past month, falling short of the Construction sector's gain of 2.06% and outpacing the S&P 500's loss of 2.88%.
The upcoming earnings release of KB Home will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.04, reflecting a 13.33% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.73 billion, showing an 8.88% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.38 per share and revenue of $6.84 billion. These totals would mark changes of +19.2% and +6.68%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for KB Home. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 0.94% higher within the past month. Right now, KB Home possesses a Zacks Rank of #2 (Buy).
Digging into valuation, KB Home currently has a Forward P/E ratio of 9.43. This signifies a premium in comparison to the average Forward P/E of 8.94 for its industry.
Meanwhile, KBH's PEG ratio is currently 0.8. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Building Products - Home Builders industry stood at 0.88 at the close of the market yesterday.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% of all 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.
To follow KBH in the coming trading sessions, be sure to utilize Zacks.com.