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The latest trading session saw KB Home (KBH) ending at $54.27, denoting a +1.5% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 2.03%. At the same time, the Dow added 1.23%, and the tech-heavy Nasdaq gained 2.74%.
Heading into today, shares of the homebuilder had lost 9.54% over the past month, lagging the Construction sector's loss of 6.28% and the S&P 500's loss of 5.07% in that time.
Investors will be eagerly watching for the performance of KB Home in its upcoming earnings disclosure. In that report, analysts expect KB Home to post earnings of $1.57 per share. This would mark a year-over-year decline of 26.98%. In the meantime, our current consensus estimate forecasts the revenue to be $1.57 billion, indicating an 8.34% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.34 per share and revenue of $6.83 billion, which would represent changes of -13.14% and -1.49%, respectively, from the prior year.
Any recent changes to analyst estimates for KB Home should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, there's been an 8.28% fall in the Zacks Consensus EPS estimate. KB Home is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, KB Home currently has a Forward P/E ratio of 7.28. This denotes a discount relative to the industry's average Forward P/E of 7.53.
It is also worth noting that KBH currently has a PEG ratio of 2.33. 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. As of the close of trade yesterday, the Building Products - Home Builders industry held an average PEG ratio of 1.23.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 177, positioning it in the bottom 29% of all 250+ industries.