In the latest trading session, KB Home (KBH) closed at $34.34, marking a +1.6% move from the previous day. This move outpaced the S&P 500's daily loss of 0.66%. Elsewhere, the Dow lost 1.01%, while the tech-heavy Nasdaq lost 0.55%.
Heading into today, shares of the homebuilder had lost 1.92% over the past month, lagging the Construction sector's loss of 1.65% and the S&P 500's gain of 1.77% in that time.
Wall Street will be looking for positivity from KBH as it approaches its next earnings report date. In that report, analysts expect KBH to post earnings of $1.31 per share. This would mark year-over-year growth of 36.46%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.60 billion, up 18.54% from the year-ago period.
Investors might also notice recent changes to analyst estimates for KBH. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.28% higher. KBH is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, KBH is holding a Forward P/E ratio of 9.78. This valuation marks a discount compared to its industry's average Forward P/E of 9.81.
We can also see that KBH currently has a PEG ratio of 1.05. 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 Building Products - Home Builders was holding an average PEG ratio of 1.08 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 44, which puts it in the top 18% 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.
To follow KBH in the coming trading sessions, be sure to utilize Zacks.com.
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