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Why KB Home (KBH) is a Top Value Stock for the Long-Term

Zacks Equity Research
·2-min read

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

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KB Home (KBH)

Based in Los Angeles, CA, KB Home is a well-known homebuilder in the United States and one of the largest in the state. The company’s revenues are generated from Homebuilding (accounting for 99.5% of fiscal 2023 total revenues) and Financial Services (0.5%) operations.

KBH sits at a Zacks Rank #2 (Buy), holds a Value Style Score of A, and has a VGM Score of B. Compared to the Building Products - Home Builders industry's P/E of 9X, shares of KB Home are trading at a forward P/E of 8.9X. KBH also has a PEG Ratio of 0.8, a Price/Cash Flow ratio of 9X, and a Price/Sales ratio of 0.8X.

Many value investors pay close attention to a company's earnings as well. For KBH, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.22 to $8.01 per share for 2024. Per share KBH boasts an average earnings surprise of 26.1%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding KBH to their portfolios.

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KB Home (KBH) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research